What Is Hidden Social Costs? Negative Externalities Explained In Hindi
1Hidden Social Costs Negative Externalities Explained In Hindi
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Negative externalities are a type of market failure where the actions of one individual or group impose costs on others, without compensation. These costs are often hidden or indirect, and can have a significant impact on society as a whole.
An example of a negative externality is pollution from a factory. The factory may produce goods that benefit consumers and generate profits for the owners, but the emissions from the factory also harm the health of nearby residents and damage the environment. These costs are not factored into the market price of the goods, and the factory owners do not bear the full cost of their actions. As a result, society as a whole suffers from the negative externalities created by the factory.
Negative externalities can also arise in other areas, such as traffic congestion, noise pollution, and second-hand smoke. In each case, the actions of one group impose costs on others, without compensation.
To address negative externalities, governments and other organizations can implement policies and regulations to ensure that those who create externalities bear the full cost of their actions. For example, governments can impose taxes on polluters to account for the social costs of pollution, or mandate that polluters install technology to reduce their emissions.
In addition, consumers and businesses can take steps to reduce negative externalities by making more sustainable choices. For example, consumers can choose to purchase products from companies that have environmentally-friendly practices, and businesses can implement policies to reduce their carbon footprint.
By recognizing and addressing negative externalities, society can better account for the true costs of economic activity and ensure that resources are used in the most efficient and sustainable way possible.