Which of the following is an example of a positive externality?
A) something obtainable at a zero price
B) a lower crime rate for a community in which residents receive more education
C) increased purchases of landscaping services by a homeowner that boost a neighbor's property value
D) a discount for consumers buying in large quantity

Question

Quizplus · Accepted Answer

A positive externality is a benefit that is enjoyed by a third-party as a result of an economic transaction. Option B is an example of a positive externality as the increased education of the residents creates a safer environment for everyone in the community.

Which of the Following Is an Example of a Positive