Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A neighbor's well-maintained garden increases your property value.
B
A factory polluting a river near a town.
C
A company that fails to pay its taxes.
D
A store that sells goods at a higher price than its competitors.
Understanding the Answer
Let's break down why this is correct
Answer
A positive externality happens when someone's action benefits others who are not directly involved in the activity. For example, imagine a person who plants a beautiful garden in their front yard. This garden not only makes their home look nice, but it also brightens the street for neighbors and attracts butterflies and bees, benefiting the local ecosystem. In this case, the gardener enjoys their flowers, but so do the people walking by and the insects that thrive because of the garden. This shows how one person's effort can create good effects for the community and the environment around them.
Detailed Explanation
When your neighbor has a beautiful garden, it makes your area look nicer. Other options are incorrect because Some might think pollution helps businesses grow, but it actually harms the environment; Not paying taxes might seem like it helps a company save money, but it hurts the community.
Key Concepts
positive externalities
Topic
Externalities and Their Effects
Difficulty
easy level question
Cognitive Level
understand
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