A positive consumption externality occurs when:
A) Jack eats too much chocolate and gets a sore stomach
B) Jack eats healthily and as a result is very productive at work
C) Jack eats badly and is always in a good mood
D) Jack pays Aaron to allow him to eat all his chocolate biscuits

Question

Quizplus · Accepted Answer

A positive consumption externality occurs when the consumption of a good or service by one person benefits another person who is not involved in the exchange. In this case, Jack's healthy eating habits result in him being more productive at work, which potentially benefits his colleagues or employer.

A Positive Consumption Externality Occurs When