An example of a positive externality is:
A)congestion on a freeway.
B)pollution in a lake.
C)a politician campaigning before an election.
D)the planting of trees on a property along a freeway.
E)the provision of warranties by the sellers of consumer durables.

Question

Quizplus · Accepted Answer

The planting of trees on a property along a freeway is a positive externality because it benefits the general public by reducing air pollution, noise pollution, and providing aesthetic benefits, even though the property owner is the one who bears the cost of planting and maintaining the trees.

An Example of a Positive Externality Is