Social Benefits

Definition

Social benefits refer to the positive effects or outcomes that are enjoyed by society as a whole when an economic activity takes place. These benefits can include improvements in public health, education, infrastructure, and overall well-being.

Analogy

Imagine you and your friends decide to clean up a park together. The social benefit is that everyone in the community gets to enjoy a cleaner and more beautiful park.

Related terms

Private Benefits: Private benefits are the individual gains or advantages that individuals or firms receive from an economic activity.

Marginal Social Benefit: Marginal social benefit refers to the additional benefit society receives from producing one more unit of a good or service.

Positive Externalities: Positive externalities occur when the production or consumption of a good or service results in benefits for third parties who are not directly involved in the transaction.