📚 Learning Guide
Externalities and Their Effects
medium

Positive externalities are to education as negative externalities are to what?

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

Pollution

B

Public transport

C

Technological innovation

D

Tax incentives

Understanding the Answer

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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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