📚 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
Explore Topic

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 benefits from a good or service that they did not directly pay for. For example, think about a person who decides to plant a beautiful garden in their front yard. While they enjoy the beauty and the fresh air, their neighbors also benefit because they get to enjoy the view and the increased value of their properties. This shows how one person's choice to create a lovely space can have positive effects on others around them. In this way, the garden serves as a clear example of a positive externality in consumption.

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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