Which of the following is an example of a positive externality?
A) banning the sale of candy in elementary schools
B) planting trees along the pavement, which adds beauty and creates shade
C) forbidding the use of cell phones in public
D) prohibiting street parking in all residential neighbourhoods

Question

Quizplus · Accepted Answer

Planting trees along the pavement creates a positive externality because it benefits not only the person who planted the tree but also the general public by adding beauty to the area and providing shade for pedestrians. The other options listed (banning candy sales, forbidding cell phone use, and prohibiting street parking) do not create positive externalities.

Which of the Following Is an Example of a Positive