Question

The private benefit is​ ________, while the social benefit is​ ________.

A. the total benefit from consuming the good or​ service; the benefit received by the consumer of a good or service
B. the benefit received by the consumer of a good or​ service; the total benefits from consuming the good or service
C. the benefit received by the consumer of a good or​ service; the external benefit
D. None of the above.

Answer 1

The correct answer is option B.

Step-by-step explanation:

The private benefit can be defined as the benefit earned by the consumers of a good or service from the consumption of that good or service.

The social benefit includes both private benefits as well as any external benefit involved in the consumption of a good or service. It is the total benefits earned from consuming the good or service.

The external benefits can also be called an externality. It is the benefit earned by a third party due to activities it is not involved in. External benefit makes social benefit greater than private benefit.