All of the following generate positive externalities EXCEPT
A)public health programs.
B)lower marginal tax rates.
C)requiring proof of inoculation before entering college.
D)requiring proof of inoculation before entering elementary school.

Question

Quizplus · Accepted Answer

Lower marginal tax rates do not generate positive externalities. Positive externalities refer to the benefits enjoyed by society as a whole, regardless of whether or not individuals contribute to or pay for them. Lower marginal tax rates may benefit individuals in terms of increased disposable income, but they do not generate broader social benefits that are not captured by market prices. In contrast, public health programs and requiring proof of inoculation generate positive externalities by improving overall health outcomes and reducing the spread of preventable diseases.

All of the Following Generate Positive Externalities EXCEPT