Which of the following is an example of an external benefit?
A) a ton of coal burned in a power plant to produce electricity
B) a car accident that crowds a major Los Angeles freeway
C) the production of a slice of pizza
D) the cleanup of a large lake
E) the consumption of a can of Mt. Dew

Question

Quizplus · Accepted Answer

The cleanup of a large lake is an example of an external benefit because it improves the quality of the environment and benefits society as a whole, even if individuals may not directly pay for it.

Which of the Following Is an Example of an External