The provision of a public good generates a
A)positive externality, as does the use of a common resource.
B)positive externality and the use of a common resource generates a negative externality.
C)negative externality, as does the use of a common resource.
D)negative externality and the use of a common resource generates a positive externality.

Question

Quizplus · Accepted Answer

The provision of a public good, such as a park or a clean environment, benefits everyone, even those who don't directly pay for it, creating a positive externality. Conversely, the use of a common resource, like overfishing in a public lake, can deplete or degrade that resource, leading to negative externalities for the community.

The Provision of a Public Good Generates a