Which of the following would result in a positive externality?
A) A local government sets a maximum price on gasoline.
B) Taco Bell adds 15 new items to its dollar menu.
C) Medical research results in a cure for Ebola.
D) A solar panel manufacturer raises its prices due to increased demand.

Question

Quizplus · Accepted Answer

Medical research resulting in a cure for Ebola would create a positive externality by significantly improving public health beyond the individuals directly involved in the research or those who can afford the cure, benefiting society at large.

Which of the Following Would Result in a Positive Externality