Qualification > Commerce
ALL ECONOMICS DISCUSSION, PAPERS HELP HERE!!
elemis:
--- Quote from: aangel42 on June 10, 2010, 03:04:09 pm ---Okay, so wait, if we apply what you said to this statement: "Greenhouse gases caused by burning fuel in Europe are leading to global warming." So the effects on non-European countries will be external costs, and NOT social costs, because we're only taking non-European countries into consideration? If we were taking the entire world under consideration, then it would be a social cost?
--- End quote ---
Partly correct. The effect on Non-Euro countries is EXTERNAL since they were not part of the production process.
External costs are ONE component of SOCIAL COSTS. The other component is the PRIVATE COSTS.
For example, in your example lets say some of the pollution given off blocks the machinery in a power station BURNING the FUEL.
The COST of cleaning the machinery is a PRiVATE COST to the firm that owns the POWER STATION.
Freaked12:
--- Quote from: aangel42 on June 10, 2010, 03:04:09 pm ---Okay, so wait, if we apply what you said to this statement: "Greenhouse gases caused by burning fuel in Europe are leading to global warming." So the effects on non-European countries will be external costs, and NOT social costs, because we're only taking non-European countries into consideration? If we were taking the entire world under consideration, then it would be a social cost?
--- End quote ---
Social cost is nothing except the adding up of Private costs(to the producer in terms of producing the good/service and to the consumer when he buys the product) + External cost(negative externalities)
Freaked12:
--- Quote from: Ari Ben Canaan on June 10, 2010, 03:10:05 pm ---Partly correct. The effect on Non-Euro countries is EXTERNAL since they were not part of the production process.
External costs are ONE component of SOCIAL COSTS. The other component is the PRIVATE COSTS.
For example, in your example lets say some of the pollution given off blocks the machinery in a power station BURNING the FUEL.
The COST of cleaning the machinery is a PRiVATE COST to the firm that owns the POWER STATION.
--- End quote ---
EXACTLY
SOCIAL COSTS HAS NO MEANING APPARENTLY
BlackBunny103:
Hey guys, can you please explain to me why the answer to this question is C? I put D.
Thanxx :D
Freaked12:
--- Quote from: Arsenal<3 on June 10, 2010, 03:17:14 pm ---Its because
the equilibrium point is X thats where the original demand AND supply meet.
When the labour costs increased it means the supply decreased so the supply curve will shift to the left.
When demand decreased demand curve will shift to the left as well
so C is the answer
--- End quote ---
CORRECTION
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