Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
They only benefit the individual consumer.
B
They can lead to increased government regulation.
C
They provide benefits to third parties, enhancing overall societal welfare.
D
They discourage consumption of certain goods.
Understanding the Answer
Let's break down why this is correct
Answer
Positive externalities in consumption occur when the benefits of a good or service extend beyond the individual consumer to society as a whole. For example, when someone installs solar panels on their home, they not only reduce their own electricity bills but also contribute to cleaner air and a healthier environment for everyone. This means that others benefit from lower pollution levels and reduced reliance on fossil fuels. As more people consume products that create positive externalities, society can enjoy an overall improvement in well-being and quality of life. Therefore, encouraging such consumption can lead to a healthier, more sustainable community.
Detailed Explanation
When people consume goods that have positive externalities, others benefit too. Other options are incorrect because Some might think that only the person buying a product gains from it; It may seem that positive externalities lead to more rules from the government.
Key Concepts
Positive Externalities in Consumption
Societal Welfare
Government Policy
Topic
Positive Externalities in Consumption
Difficulty
easy level question
Cognitive Level
understand
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