📚 Learning Guide
Positive Externalities in Consumption
hard

Which of the following best illustrates the concept of positive externalities in consumption?

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Learning Path
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Choose the Best Answer

A

A vaccinated individual reduces the spread of disease, benefiting the community.

B

A person buys a new car, increasing traffic congestion for others.

C

A company pollutes a river, causing health issues for nearby residents.

D

An individual purchases a luxury item that only benefits themselves.

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 without directly paying for it. For example, consider a person who plants a beautiful garden in their front yard. Not only do they enjoy the flowers and plants, but neighbors and passersby also get to enjoy the view, making the whole neighborhood more pleasant. This extra enjoyment for others is the positive externality. It shows how one person's actions can lead to benefits for the wider community, even if those people didn't contribute to the garden's cost.

Detailed Explanation

When someone gets vaccinated, they help protect others from getting sick. Other options are incorrect because Buying a new car can make traffic worse for everyone; Polluting a river harms people nearby.

Key Concepts

consumption
social benefits
private benefits
Topic

Positive Externalities in Consumption

Difficulty

hard level question

Cognitive Level

understand

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