The benefits enjoyed by those who are not involved in an activity are called

The benefits enjoyed by those who are not involved in an activity are called

• A. Private Benefit
• B. External Benefit
• C. Social Benefit
• D. Public Benefit

Answer: (B)

Positive externalities occur when an activity creates benefits for people who are not directly involved. The benefits enjoyed by those not involved are called external benefits. These arise when the activity provides spillover advantages to others, not captured by the payers or participants. For example, someone who gets vaccinated helps reduce disease spread, benefiting the wider community. This is different from private benefits, which are the gains kept by the individuals who participate. Social benefit would include both private and external benefits, while public benefit isn’t the standard term used for this specific idea.

Positive externalities occur when an activity creates benefits for people who are not directly involved. The benefits enjoyed by those not involved are called external benefits. These arise when the activity provides spillover advantages to others, not captured by the payers or participants. For example, someone who gets vaccinated helps reduce disease spread, benefiting the wider community. This is different from private benefits, which are the gains kept by the individuals who participate. Social benefit would include both private and external benefits, while public benefit isn’t the standard term used for this specific idea.