📚 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

Question & Answer
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Choose the Best Answer

A

Attending a public concert that boosts local business

B

Using a private car that leads to traffic congestion

C

Smoking in public spaces affecting non-smokers

D

Overfishing that depletes fish stocks

Understanding the Answer

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Answer

A positive externality in consumption happens when someone benefits from a good or service without directly paying for it. For example, if a person plants a beautiful garden in their yard, their neighbors can enjoy the view and feel happier, even though they didn't contribute to the garden's cost or maintenance. This increased happiness and enjoyment for the neighbors is the positive externality. It shows how one person's actions can create benefits for others in the community. In this case, the garden not only provides beauty but also improves the overall environment for everyone nearby.

Detailed Explanation

When people attend a public concert, they enjoy music and fun. Other options are incorrect because Some might think using a private car is good for everyone; People may believe smoking in public is just a personal choice.

Key Concepts

positive externalities
Topic

Positive Externalities in Consumption

Difficulty

easy level question

Cognitive Level

understand

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