Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
private benefits
B
social costs
C
external benefits
D
market prices
Understanding the Answer
Let's break down why this is correct
Answer
When individuals plant trees, they create benefits that go beyond just what they gain personally. The trees not only provide shade and beauty for the person who planted them but also improve air quality, provide homes for wildlife, and enhance the environment for everyone. This means that the overall advantages to society, like cleaner air and a healthier ecosystem, are greater than the direct benefits the tree planter receives. For example, if a person plants a tree in their yard, they enjoy the shade it provides, but the tree also helps reduce pollution and gives birds a place to live, benefiting the entire neighborhood. Therefore, the positive effects of planting trees extend far beyond the individual, highlighting the importance of considering community benefits in our actions.
Detailed Explanation
Private benefits are what individuals gain for themselves. Other options are incorrect because Social costs are the negative effects on society; External benefits are the good effects on others.
Key Concepts
Positive Externalities in Consumption
Marginal Private Benefits vs. Marginal Social Benefits
Government Interventions
Topic
Positive Externalities in Consumption
Difficulty
easy level question
Cognitive Level
understand
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