The production of a certain fertilizer emits a gas that keeps away mosquitoes and other insects from the surrounding community.This is an example of ________.
A) a positive externality
B) absolute advantage
C) a pecuniary externality
D) comparative advantage

Question

Quizplus · Accepted Answer

The production of the fertilizer emits a gas that benefits the surrounding community by repelling mosquitoes and other insects, which is a positive externality. A positive externality occurs when the production or consumption of a good or service creates benefits for third parties who are not directly involved in the transaction.

The Production of a Certain Fertilizer Emits a Gas That