Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It encourages individuals to consume solar energy, benefiting the environment and reducing overall community energy costs.
B
It only helps the individual homeowners by decreasing their energy bills without affecting anyone else in the community.
C
It creates a situation where only a few homeowners benefit, and the rest of the community bears the cost.
D
It increases pollution levels in the community by encouraging more energy consumption.
Understanding the Answer
Let's break down why this is correct
Answer
When a community offers subsidies for residents to install solar panels, it encourages more people to use renewable energy. This is related to positive externalities in consumption because when one household uses solar energy, it benefits not just themselves but also the environment and the community. For example, if many homes use solar panels, the overall demand for fossil fuels decreases, leading to cleaner air and less pollution for everyone. As a result, the community may experience improved health outcomes and a better quality of life. Overall, this initiative can create a ripple effect that makes the entire community more sustainable and environmentally friendly.
Detailed Explanation
When people use solar energy, it helps the environment. Other options are incorrect because This answer suggests only homeowners benefit; This option implies that only a few gain while others lose.
Key Concepts
Positive Externalities in Consumption
Subsidies and Government Intervention
Marginal Social Benefits
Topic
Positive Externalities in Consumption
Difficulty
medium level question
Cognitive Level
understand
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