The document discusses the presentation topics of economic and social benefits. It will be presented by a group consisting of 4 members. The presentation will cover the economic benefits, how to measure economic benefits, social benefits, and the importance of social benefits. Economic benefits are then defined and examples are provided such as profit, jobs, and GDP growth. Social benefits are defined as private benefits plus external benefits. The importance of analyzing both economic and social costs and benefits for decision making is also discussed.

2. Presentation Topic:
Economic benefits and social benefits
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3. Group Members:
Economic and social
benefits
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Arslan (48)
Zeshan (13R)
Tassawar (51)
Abu baker (10)

4. Presentation contents
Economic benefits and social benefits
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 Economics Benefits
 How to Measure economic benefit
 Social benefits
 Importance of Social benefits

5. Economic and social
benefits
Economic Benefits

6. Definition :
An economic benefit is any benefit that we can quantify
in terms of the money that it generates. Net income an
d revenues, for example, are forms of economic benefit
. Profit and net cash flow are also economic benefits.
Economic Benefit

7. Economic Benefits
Explanation:
 When company directors are looking at a proposal, they carefully consider
its economic benefits. If the proposer did not include the benefits in the proposa
l, the directors are much less likely to approve it.
 Explaining what the economic benefits are helps them determine whether
the proposal should go ahead.
 However, if a proposal’s economic benefit is less than the potential harms,
the decision- makers may turn it down.

8. Economic Benefits
Explanation:
An economic benefit may also refer to a reduction in something such as a
cost.
For example, lower raw materials or labor costs are Economic Benefits.
When the price of all goes down, thousands of companies and millions of
people enjoy the Economic Benefits

9. Economic Benefits
How to measure economic benefits
Revenue
GDP growt
h rate
Net cash
flow
Wealth
creation

10. Economic Benefits
Net cash flow :
Net cash flow is the profitability measurement that represents the
amount of money produced or loss during a period by calculating the
difference between from cash inflow from out flow

11. Economic Benefits
Net cash flow :

12. Economic Benefits
Net cash flow :
This metrics is typically an indicator of a firms financial strength
providing it with the ability to operate develop new product ,expand int
o new markets, invest in research reduced debit and increase shareholder
value
Short term negative cash flow may also indicate that the company has
invested in the construction of a second factory or in expensive new
equipment

13. Economic Benefits
Wealth creation :
Wealth creation is created by a business organization that provides a unique
value to its environment by adding more value to its outputs then the cost of
all resources used to produced those outputs
Wealth require a uniqueness and efficiency .if the offering is unique and
efficiently produced

14. Economic Benefits
Revenue:
The amount of money that the producer receives in exchange for the sale
proceeds is known as revenue
Example
If a firm get 16000 from sale of 100 chairs then the amount of RS1600 is
known as revenue

15. Economic Benefits
GDP growth rate :
The GDP growth rate measures how fast the economy is growing .
The GDP measures the economic output of a nation
Economic growth is an increase in the production of goods and services over
a specific period

16. Economic Benefits
Examples
Profit
New Jobs
Productivity
Wealth creation
GDP growth

17. Economic Benefits
Net Benefits:
Subtracting the total cost from the total benefits in an equivalent measure
after accounting for the effects of time results in the net benefits. If the net
benefits of a project exceed its cost, then investor might decide to proceed.
They may also compare net benefits of competing projects to choose which
to pursue.

18. Economic and social
benefits
Social Benefits

19. Definition :
Social benefits are private benefits gained by
individuals directly involved in a transaction
together with the external benefits gained by third
parties not directly involved in the transaction.
Social Benefit

20. Social Benefits
social benefit is the total benefit to society from producing
or consuming a good/service.
Social benefit includes all the private benefits plus any
external benefits of production/consumption.
If a good has significant external benefits, then the social
benefit will be greater than the private benefit.

21. Social Benefit
Social benefits are current transfers received by households
intended to provide for the needs that arise from certain
events or circumstances
Social benefits are private benefits gained by individuals
directly involved in a transaction together with the external
benefits gained by third parties not directly involved in the
transaction. for example, sickness, unemployment,
retirement, housing, education or family circumstances.

22. Social Cost and Benefits
MSBExternal
benefit
MPB
MSC
Q1 Q2
P1
P2

23. Economic cost Benefit
Importance Of Benefit Analysis
 A benefit analysis, is a decision-making strategy which helps in assessing the
impact of investment business projects on the society as a complete.
 It is an organized and cohesive mechanism to contemplate the impact of devel
opment projects on society.

24. Economic cost Benefit
Importance Of Benefit Analysis
 The objective of analyzing the social cost benefit is to weight the heteroge
neous impact of your development project on societal elements such as pollut
ion, real estate, legal prospects, health, environment etc….
 As a result of the analysis, the project decision maker can precisely elucidate
the social welfare impact of the project.

25. Economic Cost Benefits
Importance Of Benefit Analysis
The impact of social cost-benefit analysis can be positive or negative.
 The positive impact is called as a social benefit .co
 The negative impact is termed as a social cost.

26. Economics Cost Benefits
Importance Of Benefit Analysis
 Before building a new plant or taking on a new project, managers conduct a
cost-benefit analysis to evaluate all the potential costs and revenues that a co
mpany might generate from the project.
 The outcome of the analysis will determine whether the project is financially fea
sible or if the company should pursue another project.

27. Economics Cost Benefits
Importance Of Benefit Analysis
 To determine if an investment (or decision) is sound, ascertaining if –
and by how much – its benefits outweigh its costs.
 To provide a basis for comparing investments (or decisions), compari
ng the total expected cost of each option with its total expected benef
its