If a business builds a park in a community,it creates a(n)_____ for the community members.
A) social cost
B) positive externality
C) opportunity cost
D) negative variance

Question

Quizplus · Accepted Answer

A positive externality occurs when a third party who is not directly involved in a transaction receives benefits from the transaction. In this case, the business building a park creates a positive externality for the community members as they can use the park for recreational activities, thus receiving benefits without paying for it. Therefore, option B is the best choice.

If a Business Builds a Park in a Community,it Creates