Define: True Cost Economics

Business, Legal & Accounting Glossary

Definition: True Cost Economics



Advertisement



Full Definition of True Cost Economics


What is True Cost Economics?

True Cost Economics is a new system of thought developing as a reaction to Neoclassical Economics. Neoclassical Economics stipulates that prices are and should be determined by the market principle of supply and demand. True Cost Economics, on the other hand, adds that the price of a good should not be solely determined by supply and demand, but should also account for the societal, health and environmental costs that result from the production and use of the good.

What effect does True Cost Economics have on the price of goods?

The price of goods that directly or indirectly affect humans’ quality of life or the quality of the environment in which humans live would increase substantially under True Cost Economics. For example, recent estimates predict that True Cost Economics would cause the average price of a car to increase by $40,000 because of the various forms of pollution associated with automobiles. Furthermore, the price of an airline ticket would likely increase by several hundred dollars.

Is True Cost Economics catching on?

True Cost Economics remains largely an academic idea. However, some claim the system of thought is beginning to develop a broader following due to concerns such as global warming.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/true-cost-economics/
Modern Language Association (MLA):
True Cost Economics. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 07, 2020 https://payrollheaven.com/define/true-cost-economics/.
Chicago Manual of Style (CMS):
True Cost Economics. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/true-cost-economics/ (accessed: April 07, 2020).
American Psychological Association (APA):
True Cost Economics. PayrollHeaven.com. Retrieved April 07, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/true-cost-economics/

Definition Sources


Definitions for True Cost Economics are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th February, 2020