What does 'full-cost pricing' aim to include in its assessment?

Full-cost pricing is an economic approach that seeks to account for the complete costs associated with the production, consumption, and disposal of goods and services. This includes not only the direct production costs but also the indirect costs that arise from health impacts and environmental degradation.

The correct choice encompasses the idea that full-cost pricing aims to capture a broader range of impacts linked to production processes. This includes health costs, which can arise from pollution or other harmful effects on communities, as well as the loss of ecosystem services, which refers to the benefits that society derives from natural environments, such as clean air and water, pollination of crops, and climate regulation. By incorporating these additional costs, full-cost pricing seeks to promote sustainability by providing a more accurate representation of the true cost of goods and encouraging more responsible consumption and production patterns.

In contrast, focusing solely on production costs would ignore the significant externalities that affect society and the environment. Limiting the assessment to only social and cultural impacts or just environmental clean-up costs would also fail to capture the comprehensive economic implications of production activities, thus missing the essence of what full-cost pricing aims to achieve.