divergent opportunity cost definition 9
Opportunity cost Similar to the way people make decisions, governments frequently have to take opportunity cost into account when passing legislation. The potential cost at the government level can be seen when considering, for instance, government spending on war. They are thereby prevented from using $840 billion to fund, say, healthcare, education, or tax cuts, or to diminish by that sum any budget deficit. The explicit costs are the wages and materials needed to fund soldiers and required equipment, whilst an implicit cost would the lost output as resources are direct from civilian to military…