Qualification > Commerce
eco paper 3 discussion onli!!!!!!
devileye:
if this wud help u...
*private cost are the firms own cost arising out of a business decision.e.g rent,wages
*external cost are the cost disadvantages incurred by the society caz of a business decision.towards which no payment is made.e.g pollution
*private benefits are the firms own benefits arising out of a business decision.e.g profit
*external benefits are the adv.the society gets caz of a business deciosion.e.g new roads..new street lyts..
social cost= PC + EC
social benefits = PB + EB
hope it helps....>>>>>>>>>>>>yep dude this helped thx...By the way does services come under external benfits....and what are the possible conflicts between government aims. sum 1 plz anser this... ::)
MK:
yea services do cum under benefits..
abt the govt.thing..
all i knw is tht wen externalities occur the market fails.
wat the govt does in social cost is :
fines
legalaction
legeslation
taxes
nationalisation
and in social benefits they
give subsidies
and less taxes...
i think conflicts wud arise frm these points
Name:
--- Quote from: devileye on June 01, 2009, 04:06:00 pm ---yep dude this helped thx...By the way does services come under external benfits....and what are the possible conflicts between government aims. sum 1 plz anser this... ::)
--- End quote ---
services are external benifits because they help society. eg. hospitals helps society by reducing illnesses, schools help society by reducing illiteracy
examples of conflicting aims:
aim : high employment--> increase in demand pull inflation --> conflicts with aim of stable inflation
high employment --> higher incomes --> could be spent on imported goods --> worsen balance of trade .this conflicts with the aim of maintaining a healthy balance of trade
devileye:
dude wat do u exactly mean by externalities...cn u give a brief discription...:o
MK:
externalities are basically all the external things..
SB > SC its economic use,worthwhile..
SC>SB uneconomic, nt worthwhile...
Navigation
[0] Message Index
[#] Next page
[*] Previous page
Go to full version