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6 Cards in this Set
- Front
- Back
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1. What are private costs and private benefits?
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1. Private costs and benefits refer to the costs of a firm, which an entrepreneur is concerned with and the benefits or revenue of the firm
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2. What are external costs and benefits?
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2. External costs and benefits are costs and benefits a firm may cause to third parties.
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3. What do social costs and benefits refer to?
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3. Social costs are private and external costs. Social benefits are private and external benefits. When Soc. Costs are smaller than Soc.Benefits then those particular uses of resources is beneficial for all of society (Economic use of resources). Same with opposite.(Uneconomic use of resources)
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4. What is commercial return?
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4. Profit.
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5. How can govt. prevent social costs?
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5. Subsidies, Taxation and nationalization.
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6. What is the cost-benefit analysis?
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6. The cost benefit analysis is a method used by economists to determine whether a particular use of resources is economic. They compare Social costs and Social benefits for this.
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