Illustrate what is an opportunity cost

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Q1. If deficit spending crowds out some private investment, could future generations be worse off? If external financing eliminates crowding out, are future generations thereby protected?

Q2. Illustrate what is an opportunity cost? Elucidate how does the idea relate to the definition of economics? Which of the subsequent decisions would entail the greater opportunity cost? Allocating a square block in the heart of New York City for a surface parking lot or allocating a square block at the edge of a typical suburb for such a lot? Explain

 

Reference no: EM1320528

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