If an unemployed person were hired to work on a public proje

If an unemployed person were hired to work on a public project. An accountant would include all his wages in an estimate of the project’s cost to society. An economist however would not. why?

Solution

If an unemployed person were hired to work on a public project. An accountant would include all his wages in an estimate of the project’s cost to society. An economist however would not. Because the economist consider the project is a public project and not for profit maximization but for social welfare. So to use the maximum available resources, give use of maximum available labor. The economist also calculates the cost benefit analysis. If giving employment to an unemployed person; what are the benefits to the individual and the society as a whole. And also calculating the opportunity cost.