An example of a positive externality is:
A)a rear-end spoiler feature on the back of sports cars that helps to stabilize and improve handling for the vehicle.
B)legislation reducing air pollution.
C)a chemical plant that emits thermal pollution.
D)a chocolate factory whose aroma draws people to an area of the city that has a large quantity of tourist activities and shopping.

Question

Quizplus · Accepted Answer

The positive externality in this case is the aroma from the chocolate factory drawing people to the area, which benefits other businesses in the vicinity by increasing foot traffic and potentially attracting more customers. The aroma from the chocolate factory has a positive external effect on the surrounding area as it draws people to the area increasing economic activity for nearby businesses.

An Example of a Positive Externality Is