Archives: Terms

Definition of Social Security Act The Social Security Act is landmark legislation in the United States, enacted in 1935 under President Franklin D. Roosevelt as part of his New Deal. The primary purpose of the Act was to provide financial safety nets to the elderly, the unemployed, and disadvantaged Americans […]

Definition of Social Safety Net Social Safety Net refers to a collection of services provided by the state or other institutions such as non-governmental organizations, faith-based organizations, or private-sector welfare providers with the goal of ensuring that people facing hardships are given critical support. This network is meant to catch […]

Definition of Social Returns to Education Social returns to education refer to the broad benefits that education confers not just on individuals, but on society as a whole. These benefits can be economic, such as higher productivity and economic growth, as well as non-economic, including better health outcomes, lower crime […]

Definition of Social Planner A social planner is a theoretical decision-maker or policy authority responsible for determining the allocation of resources in an economy to maximize social welfare. The concept of a social planner is often used in economic models to analyze optimal policies and interventions that can enhance the […]

Definition of Social Overhead Capital Social overhead capital refers to the basic infrastructure that supports economic activity and societal well-being. This encompasses a wide range of public investments, including transportation systems (roads, bridges, railways), utilities (water supply, electricity grids), communication networks (telephone lines, internet infrastructure), and social services (schools, hospitals, […]

Definition of Social Optimum The social optimum is a condition in which resources are allocated in the most efficient way possible, benefiting society as a whole. This means that the overall wellbeing of society is maximized. In economic terms, social optimum occurs when the total surplus (the sum of consumer […]

Definition of Social Opportunity Cost Social Opportunity Cost refers to the value of the next best alternative use of resources that is foregone when a decision is made to utilize them for a particular purpose. This concept is crucial in economic decision-making because it encompasses the benefits that society could […]

Definition of Social Custom Social custom refers to the established patterns of behavior and tradition that are characteristic of a particular society or group. These customs include practices, habits, and conventions that are passed down from generation to generation and are typically upheld by social norms and cultural expectations. Social […]

Definition of Social Cost Social cost refers to the total cost to society as a whole due to the production or consumption of a good or service. This includes both the private costs borne by individuals or businesses and any external costs suffered by third parties or the environment. In […]

Definition of Social Choice Social choice is a theoretical framework for analyzing collective decision-making. It deals with aggregating individual preferences, values, or welfare into a collective decision or social welfare function. The theory is concerned with the design of methods and mechanisms to achieve equitable and fair outcomes in situations […]