Question

If a community college decided to build an academic building, then the money and resources would not be available for a parking garage. This is an example of:

Answer 1

The given statement is an example of opportunity cost

Explanation:

Opportunity cost is defined as the something which can benefit an individual or a business, be it in a micro level or in a macro level. In the end it is all about choosing one alternative over the other.

This is usually used to make informed decisions regarding what to choose between the available resources. Resources are limited so it has to be planned properly when it has to be allocated and that is one of the primary focuses of economics.