The president of a large public university proclaims, If we can get the state government to fund our new football stadium, it will not cost us anything. Evaluate this view from an economic perspective.

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Tammy Jenkins · Accepted Answer

Final Answer : While it may not directly affect the university's budget, the cost will be borne by taxpayers. Also, there will be opportunity costs brought about by diverting stadium funding from roads, hospitals, or primary schools. We also should not ignore the fact that the state may reduce its funding of the university in other areas, such as student financial aid, to compensate for the cost of the football stadium.

The president of a large public university proclaims, "If we can get the state government to fund our new football stadium, it will not cost us anything." Evaluate this view from an economic perspective.

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