📚 Learning Guide
Positive Externalities in Consumption
easy

What is a positive externality in consumption that contributes to social welfare?

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

Increased education leading to higher productivity

B

Pollution from industrial activities

C

Overfishing of ocean resources

D

Traffic congestion in urban areas

Understanding the Answer

Let's break down why this is correct

Answer

A positive externality in consumption happens when someone’s use of a good or service benefits others in society, not just themselves. For example, when a person gets vaccinated against a contagious disease, they help protect not only their own health but also the health of those around them. This leads to fewer people getting sick, which can lower healthcare costs and improve overall community well-being. Such benefits make the community healthier and happier, contributing to social welfare. Therefore, positive externalities show how individual actions can lead to greater benefits for everyone.

Detailed Explanation

When more people get educated, they can work better and earn more. Other options are incorrect because Pollution harms people and the environment; Overfishing reduces fish populations.

Key Concepts

social welfare
Topic

Positive Externalities in Consumption

Difficulty

easy level question

Cognitive Level

understand

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