What is an example of a positive externality
A)A college student buys a new car when she graduates.
B)The mayor of a small town plants flowers in the public park.
C)Local high school teachers have pizza delivered every Friday for lunch.
D)An avid fisherman buys new fishing gear for his weekend fishing trip.

Question

Quizplus · Accepted Answer

Planting flowers in a public park creates a positive externality because it provides beauty and enjoyment to everyone who visits or passes by the park, regardless of whether they pay for or contribute to the flowers. The benefits of the flowers extend beyond the person who planted them. The other options do not involve positive externalities because they only benefit the individual or a limited group of people.

What Is an Example of a Positive Externality