those in society other than the deci sion maker, which results from a specific economic decision. The concept of social costs is closely related to the concept of externalities. The social costs associated with a specific economic decision differ, in theory, from the private costs associated with such a decision by the amount of the value of any external economies or diseconomies associated with the economic decision. With respect to the proposal to increase the federal transportation fuel tax, significant social costs would be imposed on urban areas as a result of the implementa tion of the tax increase. 4
In the application of cost/benefit analysis to economic policy decision making, it is generally held that society should attempt to attain the greatest good for th
...