Which of the following is an example of a positive externality?
A) banning the sale of junk food on Sundays
B) living next door to a dairy farm
C) purchasing a pinball machine for your game room
D) planting trees along a sidewalk which add beauty and create shade

Question

Quizplus · Accepted Answer

Positive externalities occur when a third party benefits from the actions of others. Planting trees along a sidewalk adds beauty and creates shade, which benefits others in the community, not just the person who planted the trees. This is a classic example of a positive externality, as it provides benefits to people who did not directly pay for or participate in the planting of the trees.

Which of the Following Is an Example of a Positive