Which activity generates a positive externality?
A)You buy a new car and find $5,000 in the door panel.
B)Your next-door neighbor mows the lawn at 6 A.M.
C)Your next-door neighbor installs a bat house,and the bats eat mosquitoes.
D)Joe buys health insurance but decides not to take the time to get a flu shot.

Question

Quizplus · Accepted Answer

Installing a bat house generates a positive externality because the presence of bats helps to control the mosquito population, which benefits not only the neighbor who installed the bat house but also the entire community by reducing the spread of diseases like West Nile virus.

Which Activity Generates a Positive Externality