All of the following generate positive externalities EXCEPT
A) public health programs.
B) a lower marginal tax rate for a household's income.
C) requiring proof of inoculation before entering college.
D) requiring proof of inoculation before entering elementary school.

Question

Quizplus · Accepted Answer

Lower marginal tax rates do not generate positive externalities as they primarily benefit the individual or household and do not have significant positive spillover effects on society as a whole. Positive externalities arise when the benefits of an activity spill over to third parties who are not directly involved in the activity. Public health programs, requiring proof of inoculation before entering college and elementary school are all examples of activities that generate positive externalities by preventing the spread of infectious diseases and protecting public health.

All of the Following Generate Positive Externalities EXCEPT