📚 Learning Guide
Positive Externalities in Consumption
easy

Which of the following is an example of a positive externality in consumption?

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
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4
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Choose the Best Answer

A

Vaccination programs that increase herd immunity

B

A factory polluting a river

C

A monopoly setting high prices

D

A business firing employees

Understanding the Answer

Let's break down why this is correct

Answer

A positive externality in consumption happens when someone enjoys a good or service, and it also benefits others who are not directly involved in that consumption. For example, when a person plants a beautiful garden in their yard, they enjoy the flowers and plants, but their neighbors also benefit by seeing the lovely view, which makes their area more pleasant. This extra benefit to the neighbors is the positive externality. It shows how one person's choices can create good effects for others in the community, even if those others are not paying for the garden. Such situations encourage people to make choices that help not only themselves but also those around them.

Detailed Explanation

Vaccination programs help not just the person vaccinated but also others around them. Other options are incorrect because Pollution from a factory harms the environment and people; A monopoly is when one company controls a market and can charge high prices.

Key Concepts

consumption
Topic

Positive Externalities in Consumption

Difficulty

easy level question

Cognitive Level

understand

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