You choose to get a flu shot each fall and your roommate chooses not to get a flu shot. For your roommate, you getting a flu shot is a
A) positive externality.
B) negative externality.
C) transactions cost.
D) property right.

Question

Quizplus · Accepted Answer

Your getting a flu shot reduces the likelihood of you contracting and spreading the flu, which benefits your roommate by lowering their risk of getting sick, even though they chose not to get vaccinated. This is a positive externality because it is a benefit received by someone who did not choose or pay for the vaccination.

You Choose to Get a Flu Shot Each Fall and Your