Question

An important social cost of economic growth is ____________.

O the increasing inequality of income that usually accompanies sustained growth.
O the sacrifice of current consumption required for a higher level of future consumption.
O the associated inflation.
O the destruction of jobs due to labour skills of certain workers becoming obsolete.
O the associated frictional unemployment.

Answer 1

the destruction of jobs due to labor skills of certain workers becoming obsolete.

Step-by-step explanation:

Social costs in economic thinking are the amount of the personal costs accrued as a component of an activity as well as the expenses levied on customers as a function of becoming subject to the activity in which they are not paid. That is the sum of private and institutional expenses, in other terms.

Due to economic growth, demand has been rising for commodities leading to technology improvements which further leads to lower demands for labor and joblessness. However, majority of the economists states that technological improvement only enhances employment opportunities and joblessness occurs for a temporary period.