Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose 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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