Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A firm polluting the air causes health problems for nearby residents.
B
A company invests in employee training that increases overall industry productivity.
C
A factory's waste negatively impacts local wildlife.
D
A business that creates jobs for the local community but has no other effects.
Understanding the Answer
Let's break down why this is correct
Answer
A positive externality in production happens when a company's actions benefit others who are not directly involved in the production process. For example, if a factory builds a new park for its employees, the surrounding community also enjoys the park, even though they had no part in creating it. This means that the factory's investment not only helps its workers but also improves the quality of life for nearby residents. Such benefits can lead to a healthier community and increased property values, showing how one business decision can positively affect many people. Overall, positive externalities highlight the connection between economic activities and their broader impacts on society.
Detailed Explanation
When a company trains its workers, it helps not just itself but also other businesses. Other options are incorrect because This option suggests harm, not help; This choice also shows a negative effect.
Key Concepts
positive externalities
Topic
Positive Externalities in Production
Difficulty
easy level question
Cognitive Level
understand
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