Describe opportunity costs for the following. Please provide a description of the short term impact and a description of the long term impact for this opportunity cost.
The (FL) state government approving and allocating tax money to build a rail system to interconnect Miami/Orlando/Tampa Bay
2007-01-18 08:29:25 · 2 answers · asked by pmggroupe 1 in Social Science ➔ Economics
opportunity cost is associated with giving up something to get something. So, if originally the plan was to expand the Port of Miami, but now they chose to interconnect the 3 major cities in Florida, ergo, they could lose some tourist industry associated with cruise ships coming to the port of Miami in favor of intrastate railroads.
2007-01-18 08:42:40 · answer #1 · answered by Adam 4 · 0⤊ 0⤋
I will answer the best I can. Opportunity cost is the value of the alternatives not taken. So for example if I spend all my money on a $5 burger then the monetary cost was $5 but it also cost me the opportunity to buy 2 $2 hot dogs or 5 $1 tacos, etc. Anyways the short term impact is probably a smaller discretionary budget (unless they raise taxes), and whatever inconvenience (traffic, delays) caused by the construction, however long that may take. The long term impact is harder to peg, but the ideal impact is that it reduces road traffic, road pollution, increases city revenue, and pays it self off. It may also have some negative effects traditionally associated with public transportation like lower land values, migrants, and higher crime.
2007-01-18 08:47:53 · answer #2 · answered by Brandon 3 · 0⤊ 0⤋