Define Social Costs. State TWO significant examples currently facing the Irish economy.
Definition:
Example 1:
Example 2:
Worked Solution & Example Answer:Define Social Costs - Leaving Cert Economics - Question 8 - 2007
Step 1
Definition:
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Answer
Social costs refer to the total cost to society for the existence of a particular product. This includes both private costs incurred by producers and additional costs imposed on third parties, which are not reflected in market prices.
Step 2
Example 1:
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Answer
One significant example of social costs currently facing the Irish economy is pollution of air and water, specifically referring to current water pollution in Galway. This impacts public health and local ecosystems, leading to additional costs for society in terms of healthcare and environmental remediation.
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Example 2:
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Answer
Another important example is the loss of cultural heritage, particularly highlighted by the construction of the M3 motorway through the Hill of Tara. This not only damages historical sites but also impacts local communities and tourism, generating social costs that are not included in the project's financial assessments.
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