In the UK, an example is education. A student gains private benefits such as higher future earnings and better job prospects. However, society also benefits through a more skilled workforce, lower crime rates, and increased tax revenues—these are external benefits, making the social benefit greater than the private benefit.

Another example is public transport. When people use buses or trains, they benefit personally through cheaper travel. At the same time, reduced congestion and lower pollution provide external benefits to others.

When social benefits exceed private benefits, such goods tend to be underconsumed, justifying government intervention through subsidies or public provision.