An external benefit is a benefit received by:
A) the consumers trading in the market.
B) the producers trading in the market.
C) both the consumers and producers trading in the market.
D) people other than the consumers or producers trading in the market.

Question

Quizplus · Accepted Answer

An external benefit is a benefit received by people other than the consumers or producers trading in the market. This can include members of the community or society at large who may benefit from the production or consumption of a good or service, without directly participating in the transaction. Examples of external benefits include cleaner air from a company reducing pollution or a community's increased safety from individuals receiving vaccinations.

An External Benefit Is a Benefit Received By