Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Pollution
B
Public transport
C
Technological innovation
D
Tax incentives
Understanding the Answer
Let's break down why this is correct
Answer
Positive externalities in education mean that when someone gets an education, it benefits not just them but also society, like having a more informed and skilled workforce. On the other hand, negative externalities occur when someone's actions have harmful effects on others. A good example of a negative externality is pollution from a factory. When a factory pollutes the air, it can make people sick or harm the environment, impacting everyone nearby who did not choose to be affected. So, just as education has positive effects for society, pollution has negative effects that can harm people who are not involved in the factory's operations.
Detailed Explanation
Pollution is a negative externality. Other options are incorrect because Public transport usually helps people get around; New technology often brings benefits.
Key Concepts
Externalities
Market Efficiency
Social Welfare
Topic
Externalities and Their Effects
Difficulty
medium level question
Cognitive Level
understand
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