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Spending by the Irish government on education is set to hit €10 billion in 2018 and this involves an opportunity cost - Leaving Cert Economics - Question c - 2018
Question c
Spending by the Irish government on education is set to hit €10 billion in 2018 and this involves an opportunity cost. (i) Explain the term opportunity cost. (ii) ... show full transcript
Worked Solution & Example Answer:Spending by the Irish government on education is set to hit €10 billion in 2018 and this involves an opportunity cost - Leaving Cert Economics - Question c - 2018
Step 1
Explain the term opportunity cost.
Answer
Opportunity cost refers to the value of the next best alternative that is foregone when a decision is made to allocate resources to a particular option. In this context, when the Irish government decides to spend €10 billion on education, the opportunity cost may include other potential uses of that money, such as investing in infrastructure or health care. Essentially, it highlights the trade-offs and choices involved in resource allocation.
Step 2
State and explain two possible economic advantages of increased government spending on education for the Irish economy.
Answer
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Citizens may be better informed / more opportunities: Increased spending on education can enhance the general knowledge and skills of citizens. This equips them to better understand the economy, enabling informed decision-making in personal and professional contexts. As a result, a more educated workforce can adapt more readily to changing job markets, thus creating more opportunities for employment and innovation.
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Improved quality of education services: By investing in education, the government can enhance the quality of educational services, such as employing more qualified teachers, developing better curriculum, and improving facilities. This leads to an overall increase in educational standards, which not only benefits students but also enhances the long-term productivity and competitiveness of the economy.