An Example of a Positive Externality Is

question 131

Multiple Choice

An example of a positive externality is

• A)pollution because it affects people not directly involved with producing it
• B)a homeowner's maintenance of a beautiful lawn because this creates a benefit for neighbors
• C)creating a monopoly
• D)driving a car that emits pollution
• E)cigarette smoking because this imposes an indirect cost on people around the smoker

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Definitions:

Chi-Squared Test Statistic

A value used in chi-squared tests to evaluate how likely observed frequencies of events are to occur under a specific hypothetical distribution.

Expected Value

In probability theory, the sum of all possible outcomes of a particular situation, each multiplied by its likelihood of happening.

Sample Size

Sample size refers to the number of observations or data points collected in a sample from a population for the purpose of statistical analysis.

Degrees of Freedom

Degrees of freedom refer to the number of independent values or quantities that can be assigned to a statistical distribution or to a system, minus the number of linearly independent constraints.