📚 Learning Guide
Positive Externalities in Consumption
easy

How does the consumption of public parks illustrate positive externalities in consumption?

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Choose the Best Answer

A

People gain enjoyment from parks, which also increases property values nearby.

B

Only the park visitors benefit, as they pay for entry.

C

Parks create noise that decreases local property values.

D

The benefits of parks are only felt by those who maintain them.

Understanding the Answer

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Answer

Public parks provide a great example of positive externalities in consumption because they benefit not only the people who visit them but also the wider community. When someone goes to a park, they enjoy the fresh air, beautiful scenery, and recreational activities. However, their visit also helps improve the environment, making the air cleaner and the area more attractive for everyone. For instance, when families spend time in a park, they might encourage others to do the same, leading to a healthier and happier community overall. This means that the enjoyment of the park creates a ripple effect, where the benefits extend beyond just the individual users.

Detailed Explanation

When people enjoy parks, they feel happy and relaxed. Other options are incorrect because This idea suggests only visitors gain from parks; This option claims parks create noise that lowers property values.

Key Concepts

Positive externalities in consumption
Marginal social benefits
Public goods
Topic

Positive Externalities in Consumption

Difficulty

easy level question

Cognitive Level

understand

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