Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Increased vaccination rates lead to herd immunity, benefiting the community.
B
A new restaurant opens, attracting more customers to the area.
C
A person buys a luxury car, boosting their social status.
D
A company invests in employee training without impacting its profits.
Understanding the Answer
Let's break down why this is correct
Answer
Positive externalities in consumption happen when the benefits of consuming a good or service spill over to other people who are not directly involved in the transaction. For example, when someone plants a beautiful garden in their front yard, not only do they enjoy the flowers and plants, but their neighbors also benefit by enjoying the view and possibly having increased property values. This shows how one person's choice to create a lovely space positively affects others around them. In this scenario, the garden is the good being consumed, and the beauty it brings to the neighborhood is the positive externality. Thus, positive externalities are important because they highlight how individual actions can lead to broader social benefits.
Detailed Explanation
When more people get vaccinated, it helps protect everyone. Other options are incorrect because This option suggests that a new restaurant helps the area, but it mainly benefits the restaurant owner; Buying a luxury car mainly helps the buyer feel good.
Key Concepts
Positive Externalities in Consumption
Public Health Benefits
Social Welfare
Topic
Positive Externalities in Consumption
Difficulty
medium level question
Cognitive Level
understand
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