Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 1 views

    Social Implications of Economics

    Uploaded by

    Lizzy Erasmus
    A summary of the social implications of Microeconomics

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Social Implications of Economics

    Uploaded by

    Lizzy Erasmus
    1 views2 pages
    A summary of the social implications of Microeconomics

    Original Title

    Social implications of Economics

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    A summary of the social implications of Microeconomics

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1 views2 pages

    Social Implications of Economics

    Uploaded by

    Lizzy Erasmus
    A summary of the social implications of Microeconomics

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Social Impact: looking at how things affect people and society as a whole.

    - For example, when a new factory opens, it might create jobs (positive social impact), but it
    could also cause pollution (negative social impact).
    - Economists study these effects to see how they can make things better for everyone.

    Market Moral Dilemma: is a situation where doing what's right might not make the most
    money.
    - Imagine a company that could make more profit by selling a product that's not very safe.
    - The moral dilemma is whether to prioritize making money or doing what's ethical and safe.

    Market Failure: happens when a market doesn't work perfectly, and it causes problems.
    - For example, if a market doesn't consider pollution, companies might pollute a lot because
    they don't pay for it.
    - So, the market "fails" to account for the harm caused by pollution.

    In simple terms, social impact is about how economics affects people and society. A market
    moral dilemma is when doing the right thing clashes with making money. Market failure is when
    the market doesn't work well and causes issues like pollution or unfairness.

    Market Failure
    Category Explanation Example

    Occurs when one company has too much control A single cable company controlling
    1. Monopoly Power over a market, which can lead to higher prices and TV and internet services in an area,
    less choice for consumers. leading to high prices.

    Happens when the actions of buyers or sellers have


    Pollution from factories affecting the
    side effects on people who aren't directly involved in
    2. Externalities health of nearby residents, without
    the transaction, either positive (benefits) or negative
    compensation.
    (costs).
    Involves goods or services that are non-excludable
    Street lighting or national defense,
    (people can't be easily excluded from using them)
    3. Public Goods which benefit everyone and can't be
    and non-rivalrous (use by one person doesn't reduce
    limited to just a few people.
    availability to others).

    Occurs when one party in a transaction knows more


    4. Asymmetric Used car sellers hiding defects in a
    than the other, leading to problems like deception or
    Information vehicle from buyers.
    poor decision-making.

    When resources like air, water, or fisheries are Overfishing in the oceans due to lack
    5. Common
    available to many but not owned by anyone in of regulations, leading to declining
    Resources
    particular, they can be overused and depleted. fish stocks.

    Happens when markets aren't competitive enough,


    6. Imperfect Local pharmacies colluding to keep
    leading to limited choices and potentially higher
    Competition drug prices artificially high.
    prices for consumers.

    You might also like