The action of government to forgo road construction in order to provide more health facilities denotes
Answer Details
The action of the government to forgo road construction in order to provide more health facilities denotes opportunity cost. This is because the government has to give up the construction of roads which is the next best alternative or option that is forgone in order to provide more health facilities. The concept of opportunity cost is based on the idea that resources are scarce, and therefore, when one alternative is chosen, another alternative must be given up. In this case, the government has chosen to prioritize the provision of health facilities over the construction of roads, implying that the opportunity cost of providing more health facilities is the foregone construction of roads.