Question

Suppose the City and County of Honolulu decides to give an extra $0.05 for each can and bottle returned to encourage more recycling. Which of the following statements is true?

A. The social benefit of the program is larger than the private benefit because increased recycling decreases the amount of garbage on the island which leads to a number of benefits to everyone.

B. There is a positive social benefit from reduced garbage on the island, but there is no private benefit because those who recycle get nothing in return.

C. The private benefit of the program is larger than the social benefit because those who return bottles and cans get money but there is little to no benefit to society.

D. There is a positive private benefit, but no social benefit because third parties are not affected by increased recycling.

Answer 1

There is a huge social benefit of recycling on the small island of Honolulu, recycling will reduce the amount of garbage and help save the precious resources which get thrown away as waste.

By paying a certain amount of sum to the people who are returning the bottle the private benefit is also there, though in a small amount.

The answer is "A", the social benefit of the program is larger than the private benefit because increased recycling decreases the amount of garbage on the island which leads to a number of benefits to everyone.