When the government has to decide between building a new hospital or a new school in a town, it must take into account all the benefits and costs including:
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Will illness and death rates in the area increase without a new hospital?
Will an increase in illness lead to fewer people being able to work and higher social welfare costs as a result? Will a new school help young people to get jobs? Will a new school help attract new businesses to invest in the area?
The opportunity costs faced by individuals, businesses and governments are often hard to measure and can make economic decisions very difficult. These decisions rarely have a clear right or wrong answer, but they make economic decisions extremely interesting.
Literacy
1. Decide which choice in the Case Study you think would be better, the hospital or the school.
2. Write a list of at least six reasons why this choice would be better. 3. Take turns presenting your opinions to the class. 4. Finally, have a class vote on the favourite choice.
Business Careers Economists specialise in the study of economic problems. They are employed by State organisations, financial institutions and many large businesses to analyse economic information and to provide advice and guidance about how best to use limited resources.
