Which of the following is an example of an external benefit?
A) a ton of coal burned in a power plant to produce electricity
B) a car accident that crowds a major Los Angeles freeway
C) the production of a slice of pizza
D) the cleanup of a large lake
E) the consumption of a can of Mountain Dew

Question

Quizplus · Accepted Answer

The cleanup of a large lake is an example of an external benefit because it provides benefits to individuals who did not contribute towards the cost of the cleanup, such as tourists who visit the lake or neighboring communities who rely on it for their drinking water.

Which of the Following Is an Example of an External