Read the information and use it to answer the constructed-response question.

The state legislature has to decide whether to fund a proposal to repair roads or a proposal that would
increase funding for new school construction.

Describe the benefits and opportunity cost of the decision.

• What is the best way for the state government to determine which proposal to fund? Explain your
answer.

• Include details and examples to support your answer.

While the benefits of the school construction is that it would enhance the education environment in the state, create jobs and also facilitate learning.

The best way for the state government to determine the budget to fund is to establish the project that would provide the most benefit to the users and also to the state in general.

The opportunity cost would be the cost of picking one of these choices over the other.

If the school construction is picked, the opportunity cost would be the benefits of the road that would be lost.

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