📚 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
Learn Explanation
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 occurs when someone’s consumption of a good or service benefits others who are not directly involved in that transaction. For example, when a person plants a beautiful garden, not only do they enjoy the flowers and plants, but their neighbors and passersby also benefit from the lovely view and improved air quality. This means the garden provides a positive experience for the community, even if they did not pay for it or participate in its creation. Such benefits can lead to increased property values and a more pleasant environment for everyone. Thus, the enjoyment and advantages that come from one person's actions spread out to enrich the lives of others around them.

Detailed Explanation

When many people get vaccinated, it helps protect everyone, even those who aren't vaccinated. Other options are incorrect because This option shows a negative effect; A monopoly can hurt consumers by charging too much.

Key Concepts

consumption
Topic

Positive Externalities in Consumption

Difficulty

easy level question

Cognitive Level

understand

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