Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Marginal Private Benefit
B
Marginal Social Benefit
C
Negative Externality
D
Public Good
Understanding the Answer
Let's break down why this is correct
Answer
This example fits into the category of positive externalities in consumption because it shows how one person's actions can benefit others. When the homeowner plants a beautiful flower garden, it not only makes their own property look nicer but also creates a pleasant view for their neighbors and passersby. This enjoyment from the flowers is something that people can experience without directly paying for it, which is a key aspect of positive externalities. For instance, if someone walks by and admires the blooms, they feel happiness and appreciation, even though they didn’t contribute to the garden’s creation. Thus, the garden provides a shared benefit that enhances the community's overall well-being.
Detailed Explanation
The garden creates benefits for others, like neighbors who enjoy the view. Other options are incorrect because This option focuses on the benefits just for the homeowner; A negative externality means something harmful happens to others.
Key Concepts
Positive Externalities in Consumption
Marginal Social Benefits
Resource Allocation
Topic
Positive Externalities in Consumption
Difficulty
medium level question
Cognitive Level
understand
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