Which of the following activities, if any, represents an external benefit?
A)The benefit to a consumer from consuming a Caesar salad.
B)The damage to a person's health from secondhand smoke.
C)The reduction in tourist revenues at a beach resort caused by an oil spill.
D)The reduction in property values caused by the construction of a bar next to your home.
E)None of the above

Question

Quizplus · Accepted Answer

External benefits refer to positive effects experienced by third parties not directly involved in an economic transaction. None of the options listed represent an external benefit; they either describe private benefits or external costs (negative externalities).

Which of the Following Activities, If Any, Represents an External