Business Studies·Regulation of business activity · NSSCO 5.1
Government regulation, social costs & cost-benefit analysis
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A business does not act alone in the world — its choices touch the whole of society. When a factory earns a profit but pours smoke over a neighbourhood, someone gains while others quietly pay. In this lesson we learn what the government is trying to achieve, why it steps into business, and three powerful ideas — social cost, social benefit and cost-benefit analysis. We finish by seeing how the government protects Namibia's environment and its resources from harm.
What you'll learn in this lesson
By the end you should be able to (NSSCO Business Studies 5.1):
- List the social and economic objectives of the government
- Discuss in general terms why the government needs to intervene in business activity
- Define social cost
- Define cost-benefit analysis
- Discuss the idea of social costs and the concept of cost-benefit analysis in general terms (the treatment should be entirely descriptive)
- Apply the concept descriptively to the resolution of simple social cost and social benefits situations
- Discuss how the government can protect the environment against harm (protection against pollution, protection against the exploitation of non-renewable resources)
- Suggest government protection strategies for the environment in particular circumstances
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Miss Maria and Mike talk through the whole topic — with the figure and working drawn live.