📚 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
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2
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3
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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

Let's break down why this is correct

Answer

A positive externality in consumption happens when someone's use of a good or service benefits others who are not directly involved in that transaction. For example, when a person plants a garden and tends to beautiful flowers, not only do they enjoy the beauty and fresh air, but their neighbors also benefit from a more pleasant environment. This can encourage more people to take walks in the area or improve their own gardens, leading to a more vibrant community. In this case, the positive effect of the garden extends beyond just the gardener, showing how individual choices can have broader benefits. Therefore, the enjoyment and increased beauty from the garden is a clear example of a positive externality in consumption.

Detailed Explanation

When people go to a public concert, they spend money. Other options are incorrect because Some might think using a private car is good for everyone; People might 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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