The government announced plans to decentralise/re-locate many government departments and state agencies throughout the country - Leaving Cert Economics - Question 8 - 2006

1. Increase in Property Prices: The establishment of new agencies in various regions can lead to an increase in property demand, driving up prices. This may make housing less accessible for local residents.

2. Pressure on the Infrastructure: As government agencies relocate, areas may face increased pressure on infrastructure, such as transportation and public services. This could lead to congestion and a strain on existing facilities.

Full employment is defined as a situation where all individuals who are willing and able to work can find employment at prevailing wage rates. It encompasses a state in which the labor market has reached a level where there is minimal unemployment.

1. Increased Standard of Living: With higher employment levels, more individuals have disposable income, leading to increased consumption of goods and services. This boosts overall economic growth and improves the standard of living.

2. Increased Government Tax Revenues: A fully employed population translates to greater income tax receipts for the government, which can be used to fund public services and infrastructure development.

1. Labour Shortages: Full employment can lead to a shortage of available skilled labor, making it difficult for businesses to find qualified employees. This can hinder growth and limit production capacity.

2. Inflationary Pressures: As employment rates increase, consumer spending rises, which can lead to demand-pull inflation. Businesses may struggle to meet increased demand, resulting in higher prices for goods and services.

1. Opportunity Costs of Funds: Resources allocated to transport and communication projects may have been utilized for alternative social services that could have benefitted society more significantly, such as healthcare or education.

2. Damage to the Local Environment: Infrastructure developments can lead to negative environmental impacts, such as reduced green spaces and increased carbon emissions due to new road constructions and transport facilities.

1. Enhanced Social Capital: Improved transport and communication infrastructure can lead to better connectivity within communities, enhancing social interactions and helping to foster a sense of community.

2. Attracting Foreign Investment: A well-developed transport infrastructure can make regions more attractive to foreign investors, as it facilitates better access to markets and resources.