1. Opportunity cost and military spending in the US:

In 2020 America's military budget is set to grow for the fifth consecutive year. Republican law makers are keen to see defence spending rise by well above 3 percent of GDP. The Trump administration has proposed $750 billion in defence spending as part of its budget plan. At the same time the administration wants to cut domestic programs, such as education. Under its budget plan the United States is expected to spend more on its military in 2020 than at any point since the Second World War.

Government spending decisions represent clear opportunity cost situations. The Trump administration's decision to increase defence spending can be viewed in terms of the opportunity cost of fewer funds available for expenditure on education. The reasons for the US government's decision to spend more on defence may well be viewed in terms of the greater political value it currently places on increased defence spending relative to education.

Research another government decision that involves an opportunity cost.