CHILD DEVELOPMENT PEDAGOGY

Detailed explanation-1: -Inflation. Economic growth tends to cause inflation when the growth rate is above the long run trend rate of growth. It is when demand increases too quickly that we get a positive output gap and firms push up prices. Graph showing economic growth caused by rising AD leads to inflation.

Detailed explanation-2: -The social costs include all these private costs (fuel, oil, maintenance, insurance, depreciation, and operator’s driving time) and also the cost experienced by people other than the operator who are exposed to the congestion and air pollution resulting from the use of the car.

Detailed explanation-3: -Social cost in neoclassical economics is the sum of the private costs resulting from a transaction and the costs imposed on the consumers as a consequence of being exposed to the transaction for which they are not compensated or charged. In other words, it is the sum of private and external costs.

Detailed explanation-4: -The social cost is the total cost to society. It includes private costs plus any external costs. The economic cost is the combination of losses of any goods that have a value attached to them by any one individual.