Unpriced byproducts of production or consumption that provide benefits to other consumers or other firms are known as _____
A)negative externalities.
B)merit goods.
C)positive externalities.
D)private benefits.
E)pure substitutes.

Question

Quizplus · Accepted Answer

Positive externalities are the unpriced byproducts of production or consumption that provide benefits to other consumers or other firms. They are called positive because they have a positive impact on society as a whole. For example, a person who plants a tree in their front yard provides shade and aesthetic value to their neighbors, without receiving any direct payment or compensation for it.

Unpriced Byproducts of Production or Consumption That Provide Benefits to Other