Suppose your school is considering whether to spend $20 million building a new state- of-the-art recreation facility. All of the students agree that the existing facility is in disrepair and that a new facility would be much nicer. Despite this, however, when students are asked to vote on whether they would like the school to build the new recreation facility, over 78% vote no. Why might such a large fraction of students vote no even though they all agree that a new recreation facility would be much nicer than the existing one?

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28-02-2022
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Suppose your school is considering whether to spend $20 million building a new state- of-the-art recreation facility. All of the students agree that the existing facility is in disrepair and that a new facility would be much nicer. Despite this, however, when students are asked to vote on whether they would like the school to build the new recreation facility, over 78% vote no. Why might such a large fraction of students vote no even though they all agree that a new recreation facility would be much nicer than the existing one?

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ogorwyne ogorwyne · Answer 1 · 2022-03-02T10:17:56+01:00

Based on economic theory, a large number of students would be voting no due to the fact that they would prefer that the amount was spent in a different way.

What is the theory of opportunity cost?

This is the theory that states that a person would have to forgo benefits that they would have enjoyed from an option given that they chose another option.

Most of these students voted no due to the fact that they have considered a different option that the money could have been spent on.