An example of a positive externality is
A)Increased factory use of private sector robotics that came from government research.
B)Increased health problems from air pollution.
C)Increased business profits at a hardware store that benefited from a tornado.
D)None of the choices are correct.

Question

Quizplus · Accepted Answer

Increased factory use of private sector robotics that came from government research is a positive externality because it benefits more than just the factory using the robotics. The government research that led to the creation of the robotics can be seen as a public good, and the benefits of this research spill over to other businesses that can use the robotics to become more efficient and productive. This creates a ripple effect throughout the economy, ultimately benefiting society as a whole.

An Example of a Positive Externality Is