A benefit that accrues to people other than the buyer of a good is known as ________ benefit.
A) an internal
B) an external
C) a marginal
D) a total
E) a subsidized

Question

Quizplus · Accepted Answer

An external benefit refers to a positive benefit or spillover effect that is enjoyed by people other than the buyer of a good or service. For example, planting a tree in a public park provides shade and oxygen for everyone who visits the park, not just the person who plants the tree. This positive externality is a benefit that accrues to society as a whole, rather than just the person who purchases the tree.

A Benefit That Accrues to People Other Than the Buyer