Three types of benefit
Three types of benefit
Private benefit (PB) is the benefit received directly by the decision-maker in a transaction. External benefit (EB) is a spillover benefit received by third parties outside the transaction.
Step-by-step lessons on CIE Intl A Level Economics 7.4.2 definition and calculation of social benefits (SB) as the sum of private benefits (PB) and external benefits (EB). Each one builds up to exam-style questions.