South Africa economy

Essay specific features

 

Issue:

Miscellaneous

 

Written by:

April E

 

Date added:

September 11, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 755

 

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5540 times

 

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Essay content:

It indicates an opportunity cost, the amount you lose in investing in one option compared to choosing another. The Gautrain Project represents primarily as a capital intensive project, having an expected R20 billion pumped into the project. This indicates on the Production Possibility Curve an investment in more capital than consumer goods...
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The opportunity cost represented here is that of the funds utilized for the project which could have been used for more pressing consumer needs such as housing. However on the other spectrum one has to consider the anticipated economic spin-offs this project will create. It will move 300 000 people on a daily basis thus reducing road traffic, reducing road servicing and maintenance and most importantly saving time for the commuters...
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