Economics · Public Finance
A government reallocates budgetary resources from expanding primary healthcare infrastructure to finance a capital-intensive expressway project, citing long-term growth benefits. In the context of public finance, the opportunity cost of this policy choice is best captured by which one of the following?
- 1The future toll revenue expected from users of the expressway
- 2The social and health outcomes that would have resulted from the foregone healthcare investment✓
- 3The immediate employment generated during the construction phase of the expressway
- 4The increase in fiscal deficit due to higher capital expenditure
Correct answer
The social and health outcomes that would have resulted from the foregone healthcare investment
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