Social costs of economic activity in economic theory

In economic processes there usually appear disproportions between the size of available production resources and the extent of social needs. It makes it nesessary not only to calculate outlay and output but also to evaluate properly the loss and reproduction of resources. The article tries to show how over the centuries following the industrial revolution of the end of the XVIII с and then in consequence of scientific and technological revolution in the post-war era the processes of uncontrolled exploitation of natural resources and destruction of natural environment become one of the most important problems of our civilization. The above problem, irrespective of the socio-economic system, has also been in the focus of interest of economists who have been trying to find the ways to neutralize social costs which are an unintended side effects of human economic activity. In order to build the economic mechanism that would ensure the optimum allocation and utilization of production factors, institutional and functional conditions should be created so as to neutralize these costs and make enterprises operate rationally in conditions of competitive market. The above would require democratization of political, social and economic life as well as more efficient participation of citizens in government and economic management.Digitalizacja i deponowanie archiwalnych zeszytów RPEiS sfinansowane przez MNiSW w ramach realizacji umowy nr 541/P-DUN/201