In an economy facing scarcity, if a government decides to allocate more resources to healthcare rather than education, what is the opportunity cost of this decision in terms of supply and demand principles?

When a government chooses to allocate more resources to healthcare instead of education, the opportunity cost is what they give up by not investing in education. This means that while healthcare may improve, the quality and availability of education could suffer, leading to fewer skilled workers in the future. In terms of supply and demand, if resources are limited, increasing the supply of healthcare services can lead to higher demand for those services, but it may also create a shortage in educational resources. For example, if more money goes to hospitals, schools may have fewer teachers or materials, which could affect students' learning. Therefore, the decision highlights the trade-off between two important needs in society.