📚 Learning Guide
Positive Externalities in Consumption
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Which of the following are examples of positive externalities in consumption? Select all that apply.

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Choose the Best Answer

A

Increased vaccination rates leading to herd immunity

B

Purchasing a luxury car that only benefits the owner

C

Enrolling in educational programs that enhance community knowledge

D

Planting trees in a neighborhood that improves air quality

E

Consuming fast food that provides no societal benefits

Understanding the Answer

Let's break down why this is correct

Answer

Positive externalities in consumption happen when someone benefits from a good or service that they did not directly pay for. One common example is education; when a person gets an education, they not only improve their own skills but also contribute to a more knowledgeable society. This can lead to benefits for everyone, like lower crime rates and higher productivity in the workforce. Another example is when people choose to use public parks or libraries, which can enhance community well-being and encourage social interactions without charging fees. In both cases, the benefits extend beyond the individual to the larger community, creating a positive impact that everyone can enjoy.

Detailed Explanation

Other options are incorrect because Vaccination helps the community, but this option is not about consumption; A luxury car mainly helps the owner.

Key Concepts

Positive externalities in consumption
Societal benefits of individual consumption choices
Government subsidies for beneficial goods
Topic

Positive Externalities in Consumption

Difficulty

medium level question

Cognitive Level

understand

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