Public Benefit

Examples of Public Benefit in the following topics:

• Optimal Quantity of a Public Good

  • The government is providing an efficient quantity of a public good when its marginal benefit equals its marginal cost.
  • It is equal to the marginal benefit curve.
  • The optimal quantity of the public good occurs where MB (society's marginal benefit) equals MC (provider's marginal cost), or where the two curves intersect .
  • The public good provider uses cost-benefit analysis to decide whether to provide a particular good by comparing marginal costs and marginal benefits.
  • This is the MC=MB rule, by which the provider of the public good can determine which plan, will give society maximum net benefit.

• Demand for Public Goods

  • To an individual consumer, the total benefit of a public good is the dollar value that he or she places on a given level of provision of the good.
  • The marginal benefit of a public good diminishes as the level of the good provided increases.
  • The aggregate demand for a public good is the sum of marginal benefits to each person at each quantity of the good provided .
  • The economy's marginal benefit curve (demand curve) for a public good is thus the vertical sum all individual's marginal benefit curves.
  • The efficient quantity of a public good is the quantity that maximizes net benefit (total benefit minus total cost), which is the same as the quantity at which marginal benefit equals marginal cost.

• Cost-Benefit Analysis

  • The government uses cost-benefit analysis to decide whether to provide a public good.
  • The government uses cost-benefit analysis to decide whether to provide a particular public good and how much of it to provide.
  • Cost-benefit analysis, which is also sometimes called benefit-cost analysis, is a systematic process for calculating the benefits and costs of a project to society as a whole.
  • Calculate the net benefit of the project (total benefit minus total cost).
  • Explain how to determine the net cost/benefit of providing a public good

• Fringe Benefits

  • Fringe benefits are various indirect benefits, often of a more discretionary nature than standard benefits.
  • Other fringe benefits can include employee discount programs at shops, hotels, gyms, movie theaters, and so on.
  • The term "fringe benefits" was coined by the War Labor Board during World War II to describe the various indirect benefits which industry had devised to attract and retain labor when direct wage increases were prohibited.
  • The term perks (also perqs) is often used colloquially to refer to those benefits of a more discretionary nature.
  • Fringe benefits are also thought of as the costs of keeping employees other than salary.

• Standard Benefits

  • Standard benefits span a wide variety of employee needs, and represent a key reason for employees to find full-time employers who provide a full selection of standard benefits.
  • Retirement benefit plans (pension, 401(k), 403(b)) - Employees are entitled to various retirement-related benefits such as long-term investments, pensions, and other savings for retirement age.
  • The primary draw for most of these benefits is the tax benefits, whereas withdrawing this capital past the retirement age is tax free.
  • Transportation benefits - Another common benefit is paid transportation.
  • Particularly in countries/regions where public transportation is the norm (as opposed to personal vehicles), it's quite common for the employer to pay for all work related transportation.

• Positive Externalities

  • Positive externalities are benefits caused by activities that affect an otherwise uninvolved party who did not choose to incur that benefit.
  • Positive externalities are benefits caused by transactions that affect an otherwise uninvolved party who did not choose to incur that benefit.
  • A homeowner keeps his house maintained, the neighborhood benefits through higher home values.
  • The homeowner's neighbors benefit from a positive externality.
  • There was an exchange between the doctor and the patient, but others also benefit.

• Introducing Externalities

  • An externality is a cost or benefit that affects an otherwise uninvolved party who did not choose to be subject to the cost or benefit.
  • In economics, an externality is a cost or benefit resulting from an activity or transaction, that affects an otherwise uninvolved party who did not choose to be subject to the cost or benefit .
  • In regards to externalities, the cost and benefit to society is the sum of the value of the benefits and costs for all parties involved.
  • In regards to externalities, one way to correct the issue is to internalize the third party costs and benefits.
  • An externality is a cost or benefit that results from an activity or transaction and that affects an otherwise uninvolved party who did not choose to incur that cost or benefit.

• Employee Benefits Management

  • Employee benefits are non-wage compensations designed to provide employees with extra economic security.
  • These benefits ensure that employees have access to health insurance, retirement capital, disability compensation, sick leave and vacation time, profit sharing, educational funding, day care, and other forms of specialized benefits.
  • Benefits play an important role in maintaining high levels of satisfaction.
  • In most developed nations there are laws that govern benefits and agencies to enforce them.
  • The Employee Benefits Security Administration (EBSA) is the agency in the United States responsible for administering, regulating, and enforcing many of these benefits.

• Non-Monetary Employee Compensation

  • ., benefits) are essential in recruiting skilled employees and maintaining a satisfied workforce.
  • Non-monetary benefits are essential to attracting a productive workforce.
  • Benefits can be a key element in addressing the lowest level of Maslow's needs hierarchy.
  • The largest category of non-monetary compensation includes benefits.
  • Some governments mandate benefits such as retirement savings matching, but organizations can offer additional retirement benefits through a matching plan.

• Benefits

  • Collins (1988) notes four benefits of situated cognition as a theoretical basis for learning.