A city government decides to allocate a portion of its budget to build a new park instead of funding road repairs. Which category best describes this economic choice and why?

The economic choice made by the city government is best described as an opportunity cost. This is because when they decide to spend money on building a new park, they are choosing not to spend that money on road repairs. The opportunity cost is the value of what they give up—in this case, the improved roads that could have been funded instead. For example, if the city had $1 million to spend, by choosing the park, they lose the chance to fix potholes or improve traffic flow. This situation highlights how governments must make tough decisions about where to allocate limited resources.