Question

4 multiple choice 2 points a local government has a limited amount of money to spend. it decides to spend the money to support local businesses instead of to remove trash from unused buildings and vacant lots. which of these is the opportunity cost of this decision? tax revenue jobs for local residents a clean environment profits for business owners 5 multiple choice 2 points which of these would be an economic benefit of new homes being built in a rural area? an increased tax base a lower employment rate a smaller infrastructure an increase in farm land

Explanation:

• Question 4: Opportunity cost is the value of the next - best alternative forgone. Here, the local government chose to support local businesses instead of removing trash. Removing trash would lead to a clean environment, so the opportunity cost is a clean environment. Tax revenue is related to income from taxes (not directly the alternative here), jobs for local residents might be a by - product of business support (not the forgone alternative), and profits for business owners are the gain from the chosen option (not the opportunity cost).
• Question 5: When new homes are built in a rural area, more people will live there. This means more property taxes (as homes are taxable assets) and potentially more income taxes if people move in for work. A lower employment rate is a negative (not a benefit). A smaller infrastructure is also a negative (as new homes may require more infrastructure). An increase in farm land is unlikely as new homes usually take up land (either previously non - farm or converting some farm land).

Answer:

• Question 4: C. a clean environment
• Question 5: A. an increased tax base