Question

1) What are the social costs and benefits of education?

2) What are the private costs and benefits of education

Answer 1

Part a) firstly I would like to explain the meaning of social cost with example:-

Social costs are the total costs incurred by the society when a good is consumed or produced. Social costs can be defined as private costs plus costs to third parties (i.e. private costs + total negative externalities). Social benefits is the total benefits accrued to the society from an economic activity.

In simple words we can say:

Social benefits are current transfers received by households intended to provide for the needs that arise from certain events or circumstances, for example, sickness, unemployment, retirement, housing, education or family circumstances.

Benefits of education Yet it is widely perceived that the effects of education spread beyond direct economic effects to include “social benefits” for individuals and society at large. Such benefits include a better way of taking care of ourselves and consequently creating a better society in which to live.

• Education can bring significant benefits to society, not only through higher employment opportunities and income but also via enhanced skills, improved social status and access to networks. By fully recognising the power of education, policy makers could better address diverse societal challenges.

• Lack of access to education is considered the root of poverty. Not getting an education can lead to a cycle of poverty. However, access to education can mean getting out of that cycle.

  Benefits of education

• Rate of returns from education

  Current benefits, as represented by the rate of returns from education, reflect the profitability of past level of investment. It can do so only if there are going to small increase in investment in education. If there is going to be a large scale of expansionof education design to fundamentally change the balance between the supply of and the demand for educated human resource including change in employment opportunity, career prospects, job requirements etc

  2. Economic Growth

  When an entire society is educated, productivity increases, average income increases, and unemployment decreases. This leads to the economic growth and stability of a society as a whole. It starts with education.

  3. Environmental Benefits

  Climate change is a large part of the conversation today, and society needs to work together to find ways to reduce impact on the earth. Educated individuals that enter the workforce will put their knowledge of climate change into company policies, leading to increased sustainsustainabiliy.

• Part b) meaning of Private cost The private cost is the actual cost incurred in performing the day to day operations of the business, such as the cost involved in the production and consumption of the product. ... For a firm, all the actual costs incurred, both implicit (depreciation, interest, insurance, etc.)

• In simple words we can say:

• Costs for those directly consuming or producing a product. Examples: Buying raw materials, fuel and wages.

• Benefits of education

  1. Experimentation and Diversity

  A personal benefit to getting an education is the opportunity to grow as an individual, experiment with what you are passionate about, and find yourself. You will be exposed to a diverse set of people and ideas which expand the mind .

  2. Socializing and Networking are Personal Benefits of Education

  Education provides students with the space and the opportunities to meet like-minded individuals, either on a peer or mentor basis. In school, students meet leaders in their field, top professionals, and make contacts through extra curricular activities as well.

  3. Pursuing Your Passion

  When you feel passionate about something, you want to immerse yourself in that topic. Education gives you the space to do so. In addition, you may find new passions, or new areas of interest within your field of study

  4. Personal Development of Skills

  Students are required to go through many types of assignments, discussions, courses, and more during their time in education. Therefore, they end up with a wonderful skill set that translates into the workforce.