📚 Learning Guide
Positive Externalities in Consumption
easy

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

Master this concept with our detailed explanation and step-by-step learning approach

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 a person's consumption of a good or service benefits others who are not directly involved in that consumption. For example, consider someone who decides to plant a garden filled with beautiful flowers. While the person enjoys the view and the joy of gardening, their neighbors and passersby also benefit from the lovely sight and the fresh air produced by the plants. This shared enjoyment and improved environment can lead to increased happiness and community spirit, which are social benefits. Thus, the act of planting flowers not only fulfills personal satisfaction but also enhances the well-being of the surrounding community.

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; Buying a car is a personal choice.

Key Concepts

social benefits
Topic

Positive Externalities in Consumption

Difficulty

easy level question

Cognitive Level

understand

Ready to Master More Topics?

Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.