Introduction to social costs/benefits Flashcards
1
Q
What are private costs and benefits??
A
costs= costs to individuals/ firms of consuming/ producing an item
benefits= gains to firm/ individual of producing/ consuming an item
2
Q
What are external costs/ benefits
A
costs= costs to third parties of decisions taken by individuals/ businesses
benefits= benefitsto third parties of decisions taken by individuals/ businesses
3
Q
What are social costs and benefits
A
social costs= private + external costs
Total costs to society of a given economic activity
social benefits= private + external benefits
Total gain to society of a given economic activity.
4
Q
What is cost benefit analysis (CBA)?
A
technique of assessing monetary social costs and benefits over time
