Cindy discovers that when she goes to the beach, she does not have to bring her radio. She can put her blanket near someone who has a radio and listen all day (without having to carry her radio, get sand in her speakers, or buy new batteries). This is an example of:
A) private property abuse.
B) external costs.
C) a negative externality.
D) a positive externality.

Question

Quizplus · Accepted Answer

This is an example of a positive externality, where Cindy benefits from someone else's behavior (having a radio) without paying for it or causing any negative impact.

Cindy Discovers That When She Goes to the Beach, She