I know what 'social cost' is, but not clearly.
I want to explain about 'social cost' to my friends.
is there anyone who can help me to explain?
2007-06-15 01:49:56 · 3 answers · asked by Anonymous in Social Science ➔ Economics
One example: casino. Casino can generate a lot of income...probably billions in dollar per year for the government and the casino operator. But the casino incurs a high social cost. That is many people go to casino to gamble, and they lose their money. These people are addicted to gambling, and they become broke and they keep borrowing money till they are in great debt. Some may even rob bank and steal money. These gamblers eventually become bad people, and locked behind bar. So we see that the "social cost" of having the casino.
2007-06-15 04:08:00 · answer #1 · answered by Mr Siberia 4 · 0⤊ 0⤋
Suppose that you go to the kitchen and make yourself a peanutbutter and jelly sandwhich. You make a huge mess, but do not clean it up, because it doesn't really bother you.
The private cost to you of the mess is rather small. But, suppose that your family, your roommates, or your friends are bothered by the mess. If we add up all the costs to others of this mess, we get the social costs.
Since the social costs exceed your private costs, we have a problem. This is why governments exist, really. Society could slap a fine on you, which would raise your private costs, and getting you to behave as if you were taking into account the social costs. Or, those most affected by your mess could pay you to clean up.
2007-06-15 09:17:53 · answer #2 · answered by Allan 6 · 1⤊ 0⤋
Think social impact
2007-06-15 08:57:33 · answer #3 · answered by kevrigger 5 · 0⤊ 1⤋