Which of the following expenditures to enhance productivity is most likely to convey a positive externality?
A)FNB buys a new computer.
B)Lebo pays her university tuition fees.
C)SASOL leases a new oil field.
D)General Motors buys a new drill press.

Question

Quizplus · Accepted Answer

Paying university tuition fees improves the education and skills of an individual, which in turn can benefit society by increasing productivity in the workforce and generating innovations. This positive externality is not present in the other choices, as they primarily benefit only the individual firm or company.

Which of the Following Expenditures to Enhance Productivity Is Most