Which of the following is an example of a positive externality?
A)water pollution
B)the installation of a streetlight
C)second-hand smoke
D)a loud conversation in the workplace
E)the emission of harmful gases by a factory

Question

Quizplus · Accepted Answer

The installation of a streetlight provides benefits to the community in terms of increased safety and reduced crime, which are externalities that are not accounted for by the individual or organization installing the streetlight. This is an example of a positive externality.

All of the other choices are negative externalities that impose costs on others without compensation or agreement, such as pollution, second-hand smoke, and harmful emissions from a factory. A loud conversation in the workplace could potentially be a negative externality if it disrupts the work of others, but the question does not provide enough information to determine this.

Which of the Following Is an Example of a Positive