📚 Learning Guide
Positive Externalities in Consumption
easy

Which of the following is an example of a positive externality in consumption that generates social benefits?

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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

A person planting a garden that beautifies the neighborhood

B

A factory producing pollution

C

An individual buying a car

D

A company laying off employees

Understanding the Answer

Let's break down why this is correct

Answer

A positive externality in consumption occurs when someone’s use of a good or service benefits others who are not directly involved in that transaction. For example, when a person decides to get vaccinated against a contagious disease, they not only protect themselves but also help prevent the spread of that disease to others in the community. This creates social benefits because more people are less likely to get sick, leading to a healthier population overall. In this case, the positive externality is the increased health and safety for the community, which arises from one individual's choice to get vaccinated. Thus, the action of getting vaccinated has a broader impact beyond just the person receiving the vaccine.

Detailed Explanation

When someone plants a garden, it makes the area look nicer. Other options are incorrect because Pollution from a factory harms the environment and people's health; Buying a car mainly benefits the owner.

Key Concepts

social benefits
Topic

Positive Externalities in Consumption

Difficulty

easy level question

Cognitive Level

understand

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