Safe Bank has an outside display which has the time and temperature that is always correct. This is an example of
A) an interference in the workings of the price system.
B) a breakdown in communication between the bank and its customers.
C) a negative externality.
D) a positive externality.

Question

Quizplus · Accepted Answer

The outside display that shows the correct time and temperature benefits not only the customers of Safe Bank but also people passing by. This creates a positive spillover effect or positive externality for society as a whole, which is a characteristic of a public good.

Safe Bank Has an Outside Display Which Has the Time