How Do You Spell SOCIAL COST?

Pronunciation: [sˈə͡ʊʃə͡l kˈɒst] (IPA)

The spelling of the phrase "social cost" is pronounced as /ˈsəʊʃl kɒst/. The sound of "s" in "social" is pronounced with an /s/ sound, while the "c" in "cost" sounds like a /k/. This phrase refers to the negative effects of an action or decision on society as a whole. In economics, social cost is the total cost paid by society for producing a good or service, including both the private cost and external costs such as pollution or other environmental impacts.

SOCIAL COST Meaning and Definition

1. Social cost is a concept used in economics to refer to the total cost that society incurs or bears due to the production of a particular good or service. It encompasses both the private costs borne by producers or consumers and the external costs imposed on society as a whole. The social cost takes into account not only the direct monetary expenses associated with the production or consumption of a good, but also the negative externalities or spillover effects that arise from its production or use.

   These negative externalities can include various factors such as pollution, congestion, resource depletion, and health hazards that are not fully reflected in the market price of the good or service. Social cost analysis aims to quantify and include these externalities in order to provide a more accurate estimate of the true cost of a particular economic activity or decision.

   By considering social costs, economists and policymakers can gain a better understanding of the full impact of economic activities on society and make more informed decisions. The concept of social cost is particularly relevant in the evaluation of policy interventions or regulations aimed at reducing or internalizing the external costs associated with certain goods or activities.

Etymology of SOCIAL COST

The term "social cost" is a combination of the words "social" and "cost", each with their own etymology:

1. Social: The term "social" originated from the Latin word "socius" meaning "companion" or "ally". It came into English through the Old French word "social" in the 16th century, which referred to belonging to a companion or a group. Over time, it evolved to describe relationships and interactions among people within a society.

2. Cost: The word "cost" comes from the Latin word "costus" or "constus", which means "expense" or "cost". It entered English via the Old French word "coste" in the 13th century and initially referred to the price or expenditure associated with something.