If a farmer chooses not to develop his/her land in order to preserve wildlife, it is an example of:
A) inefficiency.
B) positive externality.
C) negative externality.
D) excess of resources.

Question

Quizplus · Accepted Answer

Choosing to preserve wildlife on the land is a positive externality, as it benefits society as a whole by providing habitat and protecting biodiversity. While the land may not be used for agricultural production, the benefits of preserving wildlife outweigh the potential costs of developing the land.

If a Farmer Chooses Not to Develop His/her Land in Order