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Adams calculates costs under three alternative policies: (1) negotiate with the Barbary States; (2) wage war against the Barbary States; and (3) do nothing. Under

Adams calculates costs under three alternative policies: (1) negotiate with the Barbary States; (2) wage war against the Barbary States; and (3) do nothing. Under the first two scenarios, his cost calculation represents projected cash outflows for the U.S. government. The do nothing scenario, however, includes some costs that would require no cash outlay by either the government or its citizens. What is the relevance of this third cost calculation, and what is the relationship of the cost of doing nothing to the other two costs calculated by Adams?

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