Practice Questions
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Which of the following is an example of a positive externality in consumption?
Vaccination programs help not just the person vaccinated but also others around them. Other options are incorrect because Pollution from a factory har...
How can positive externalities in consumption lead to increased economic efficiency?
When people enjoy a good, like education, others benefit too. Other options are incorrect because Some might think that positive effects lower demand;...
Which of the following best illustrates the concept of positive externalities in consumption and its effect on social welfare?
When more people get vaccinated, it helps protect everyone in the community. Other options are incorrect because This option shows a negative effect; ...
Which of the following scenarios best exemplifies a positive externality in consumption that enhances social welfare and relates to behavioral economics?
When someone buys a hybrid vehicle, they help reduce pollution. Other options are incorrect because This option suggests that training workers only he...
Which of the following best illustrates the concept of positive externalities in consumption?
When someone gets vaccinated, they help protect others from getting sick. Other options are incorrect because Buying a new car can make traffic worse ...
Which of the following is an example of a positive externality in consumption?
When people attend a public concert, they enjoy music and fun. Other options are incorrect because Some might think using a private car is good for ev...
Which of the following is an example of a positive externality in consumption?
When many people get vaccinated, it helps protect everyone, even those who aren't vaccinated. Other options are incorrect because This option shows a ...
Which of the following is an example of a positive externality in consumption that generates social benefits?
When someone plants a garden, it makes the area look nicer. Other options are incorrect because Pollution from a factory harms the environment and peo...
When individuals consume a good that generates positive externalities, such as planting trees, the benefits to society are greater than the __________ they receive from the good.
Private benefits are what individuals gain for themselves. Other options are incorrect because Social costs are the negative effects on society; Exter...
How can government subsidies effectively address the issue of positive externalities in consumption?
Subsidies help people buy things that are good for everyone. Other options are incorrect because Some might think raising prices will reduce use; Lowe...
How does the consumption of public parks illustrate positive externalities in consumption?
When people enjoy parks, they feel happy and relaxed. Other options are incorrect because This idea suggests only visitors gain from parks; This optio...
A homeowner decides to plant a garden that produces beautiful flowers. This garden not only enhances the homeowner's property value but also provides enjoyment to neighbors walking by. Which category does this example best fit into regarding positive externalities in consumption?
The garden creates benefits for others, like neighbors who enjoy the view. Other options are incorrect because This option focuses on the benefits jus...
A community decides to offer subsidies to residents who install solar panels on their homes. How does this initiative relate to positive externalities in consumption, and what potential impact might it have on the community?
When people use solar energy, it helps the environment. Other options are incorrect because This answer suggests only homeowners benefit; This option ...
Arrange the following steps in the correct order to illustrate the positive externalities in consumption from planting trees in a neighborhood: A) Homeowners plant trees, B) Neighbors enjoy improved air quality and aesthetics, C) Increased property values in the area, D) Local government considers subsidies for tree planting.
First, homeowners plant trees. Other options are incorrect because This order suggests that property values increase before neighbors enjoy better air...
Positive externalities in consumption are to social benefits as negative externalities in production are to what?
Negative externalities in production create social costs. Other options are incorrect because Private costs are what a company pays for itself; Indivi...
If a community experiences an increase in property values due to a homeowner planting trees, what is the underlying cause of this positive externality?
The trees make the area look nicer and provide shade. Other options are incorrect because This suggests the homeowner is making money by selling trees...
Which of the following statements accurately describe positive externalities in consumption? Select all that apply.
None of the statements correctly describe positive externalities. Other options are incorrect because This suggests that only the consumer gains; Plan...
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