ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Environmental costs Increased economic growth will lead to increased output and consumption. This causes an increase in pollution. Increased pollution from economic growth will cause health problems such as asthma and therefore will reduce the quality of life.

Detailed explanation-2: -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.

Detailed explanation-3: -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-4: -(y) Social costs means costs estimated from the viewpoint of society, rather than individual stakeholders. Social cost represents the total burden imposed on the economy; it is the sum of all opportunity costs incurred associated with taking actions.