Which of the following is most likely to give rise to a positive externality?
A) A sudden increase in the price of oil due to a supply shock
B) A decrease in the price of barley due to a good harvest
C) Deforestation leading to the extinction of many species
D) The consumption of a drug to cure a communicable disease

Question

Quizplus · Accepted Answer

The consumption of a drug to cure a communicable disease can have a positive externality as it not only benefits the person who consumes it but also reduces the likelihood of the disease spreading to others, which is a benefit to society as a whole.

Which of the Following Is Most Likely to Give Rise