An Example of a Positive Externality Is When

question 29

Multiple Choice

An example of a positive externality is when

• A)an automobile emits a pollutant.
• B)your neighbor plants a beautiful garden that visible from your house.
• C)a virus spreads throughout a child care center.
• D)an electric utility burns coal and emits smoke.
• E)any act has a negative effect, or cost, on the well-being of others.

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Definitions:

Signing Authority

The legal power granted to an individual or entity to sign official documents on behalf of another person or organization.

Breached Fiduciary Duty

A violation where a person in a position of trust fails to act in the best interests of another party they owe a duty to.

Breached Fiduciary Duty

Occurs when an individual who is legally bound to act in another's best interest fails to do so, violating their trust and responsibility.

Shareholder

An individual or entity that owns one or more shares in a company, thereby holding a portion of the ownership and potentially influencing company decisions.