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 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
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