Which of the following is an example of a positive externality?
A)Sue not catching the flu because she got a flu vaccine
B)Mary not catching the flu from Sue because Sue got a flu vaccine
C)Sue catching the flu because she did not get a flu vaccine
D)Mary catching the flu from Sue because Sue did not get a flu vaccine

Question

Quizplus · Accepted Answer

Mary benefits from Sue's decision to get a flu vaccine because she is less likely to catch the flu from Sue. This is an example of a positive externality because the benefit (reduced risk of flu transmission) spills over to someone who is not directly involved in the decision (Mary), and this benefit is not reflected in the price of the vaccine.

Which of the Following Is an Example of a Positive