In which of the following markets are external benefits most likely to exist?
A) In the market for cigarettes
B) In the market for flu shots
C) In the market for ball pens
D) In the market for gasoline

Question

Quizplus · Accepted Answer

External benefits are positive effects on third parties not directly involved in a transaction. The market for flu shots is a prime example, as getting vaccinated not only protects the individual but also reduces the spread of the flu to others, creating a positive externality.

In Which of the Following Markets Are External Benefits Most