Which of the following could be associated with positive consumption externalities?
(i) child immunisations (ensuring that the general population is vaccinated against communicable diseases)
(ii) alcohol consumption
(iii) maintaining the appearance of historic buildings
A)(i), (ii) and (iii)
B)(ii) and (iii) only
C)(i) and (iii) only
D)(i) and (ii) only

Question

Quizplus · Accepted Answer

Positive consumption externality refers to a situation where the consumption of a good or service by one person benefits others in the society. 
(i) Child Immunisation: When a child is vaccinated against a communicable disease, it not only reduces the probability of the child getting sick but also reduces the chances of others getting infected. Therefore, it creates positive consumption externalities.
(ii) Alcohol consumption: Alcohol consumption can lead to negative consequences such as drunk driving accidents, health problems, and social problems. Therefore, it is not associated with positive consumption externalities.
(iii) Maintaining the appearance of historic buildings: When historic buildings are maintained, it not only benefits the owner of the building but also the entire community by preserving the history and cultural heritage of the area. Therefore, it creates positive consumption externalities.

Which of the Following Could Be Associated with Positive Consumption