Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Increased vaccination rates leading to herd immunity in a community
B
A factory polluting a river affecting local fish populations
C
A company investing in employee training that only benefits the employees
D
A new highway reducing travel time for commuters
Understanding the Answer
Let's break down why this is correct
Answer
Positive externalities in consumption occur when the benefits of consuming a good or service extend beyond the individual consumer to society as a whole. For example, when someone gets vaccinated, they not only protect themselves from illness but also reduce the chances of spreading disease to others. This leads to better public health, which is a benefit for everyone, even those who did not get vaccinated. As more people get vaccinated, overall community health improves, leading to lower healthcare costs and a healthier workforce. This situation illustrates how individual choices can create positive effects that enhance social welfare.
Detailed Explanation
When more people get vaccinated, it helps protect everyone in the community. Other options are incorrect because This option shows a negative effect; Training helps employees but doesn't help others outside the company.
Key Concepts
social benefits
welfare economics
Topic
Positive Externalities in Consumption
Difficulty
medium level question
Cognitive Level
understand
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