2. The United States Congress must approve the federal budget. This involves many difficult choices. For
example, the Congress can decide to spend money on national defense, health insurance programs, roads and
highways, education, and many other worthwhile causes. Curve B illustrates a hypothetical trade-off between
spending for defense and highways.
What is the opportunity cost of one aircraft carrier?
b. What is the opportunity cost of 300 miles of highway?
c. What other information would you need to decide on the best combination of defense spending and
highway construction?
a.