Explain, using the idea of opportunity cost, how a government might choose between investing in education versus infrastructure.

Explain, using the idea of opportunity cost, how a government might choose between investing in education versus infrastructure.

• A. Education always yields higher returns than infrastructure
• B. There is no trade-off between education and infrastructure
• C. The opportunity cost is the foregone value of the alternative; decisions depend on expected long-run returns
• D. Infrastructure investments always yield higher returns than education

Answer: (C)