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The Irish government invests significant amounts of taxpayers’ money in Irish third level education which involves an opportunity cost - Leaving Cert Economics - Question 6 - 2017
Question 6
The Irish government invests significant amounts of taxpayers’ money in Irish third level education which involves an opportunity cost. Explain the underlined term a... show full transcript
Worked Solution & Example Answer:The Irish government invests significant amounts of taxpayers’ money in Irish third level education which involves an opportunity cost - Leaving Cert Economics - Question 6 - 2017
Step 1
Explain the term opportunity cost
Answer
Opportunity cost refers to the cost of forgoing the next best alternative when making a decision. In the context of the Irish government's investment in third level education, it represents the potential benefits that could have been derived from using taxpayers' money for other purposes, such as healthcare, infrastructure, or direct financial aid to citizens.
Step 2
Advantage 1: A better educated workforce
Answer
Investing in third level education enhances the skills and knowledge of graduates, which can lead to better job opportunities and higher incomes. This not only improves the standard of living for individuals but also contributes to a more productive labor force, benefitting the economy overall.
Step 3
Advantage 2: Increased productivity
Answer
By developing the workforce's skills through education, businesses can become more efficient and profitable. A more educated workforce is likely to be more innovative and adaptable to changes in the business environment, which is crucial for economic growth and attracting foreign direct investment.