Jones
ECO201

In every aspect of life, we forfeit the opportunity to partake in one instance by choosing what we consider to be the next-best alternative; the option that will be most beneficial to our present and/or future. In economic terms this is best known as opportunity cost. With any and every given situation the smartest decision is to select the option that produces the most outcomes.
With the given possibility curve a country can produce health care and education. However when a country chooses to produce more of one they give up the opportunity to produce more of the other. If a country uses all of its resources on healthcare the result will be 13 units of health care produced and 12 units of education produced. On the other hand, if a country uses all of its resources on education the outcome will be 21 units of education produced and 7 units of health produced. If a country is currently producing 11 units of health care and 16 units of education, the opportunity cost for producing 5 more units of education will be exactly the same using all of its resources on education. The country will produce 21 units of education and 7 units of health care. Even though a country will gain 5 more units of education they will lose 4 units of health care.
Although, the production possibility curve does not tell who should receive which units, and in which increments they should receive them in, I would attempt to distribute the health care and education as evenly and in some cases as urgently as needed. I would choose to produce 21 units of education and 7 units of healthcare. My reasoning behind my decision is that with this production process I will get the most outcomes, totaling 28 units. When it comes to allocating education I would evenly distribute it throughout the country. However, when it comes to allocating healthcare, I wouldn’t distribute it as easily. Most people of a country are covered under relatives insurance or covered under their job. Nevertheless, some people are struggling to obtain health care due to not having a job or not being able to afford healthcare, therefore I would distribute health care units by urgency.
All in all, the decision that is chosen when given two products or two situations should always benefit you or your surroundings.

Work Cited
Dallin, Robert. “Written Assignment.” Saint Leo University Center for Online Learning. 29 May 2012. Course handout