Question

You are an intern to the editor of a​ small-town newspaper in​ Mallsburg, Pennsylvania. Your​ boss, the​ editor, asks you to write the first draft of an editorial for this​ week's paper. Your assignment is to describe the costs and the benefits of building a new bridge across the railroad tracks in the center of town.​ Currently, most people who live in this town must drive 2 miles through thickly congested traffic to the existing bridge to get to the main shopping and employment center. The bridge will cost the citizens of Mallsburg​ $25 million, which will be paid for with a tax on their incomes over the next 20 years. What are the opportunity costs of building this​ bridge? A. Revenue lost by shopkeepers near the old bridge. B. Any economic inefficiencies associated with the new income tax. C. The value of goods and services that the city could have purchased with the tax revenue had it not built the bridge. D. Construction costs such as​ noise, additional​ (temporary) traffic, and other delays. E. All of the above. What are the benefits that citizens will likely receive if the bridge is​ built? A. Reduced travel time for commuters and shoppers. B. Issues of income distribution. C. Less pollution from idling traffic. D. The value of the goods and services that citizens could have purchased with the additional tax burden. E. A and C only.

Answer 1

What are the opportunity costs of building this​ bridge?

All the options are applicable

What are the benefits that citizens will likely receive if the bridge is​ built?

Option B, Reduced travel time for commuters and shoppers.

Explanation:

When economic experts speak of a source of money's "opportunity cost," they mean the significance of its next highly valued appropriate use.

For example, if you spend millions of dollars on a movie, you can't even spend the time at home by reading a book and don't spend the cash.

Due to the cost of resources, you will make more efficient choices.

In comparison to its potential gains, you will determine the mortality risk of each alternative.