In Which of the Following Situations Would a Positive Externality

question 75

Multiple Choice

In which of the following situations would a positive externality most likely be involved?

• A)Shawn is sitting at home one day when she gets a telephone call, informing her that she has won $10,000 in a contest she entered three months ago.
• B)There are eight houses in the neighborhood where Rodney lives.Rodney likes nice-looking yards, and last week his neighbors began to beautify their yards.
• C)Willy needs eight hours of sleep each night to feel good.Last night he got eight hours of sleep.
• D)Patrick received an A on a biology exam.He is feeling better about his chances of getting admitted to medical school.

---

Definitions:

Income Taxes

Taxes levied by governments on the income generated by individuals or entities, which can vary based on the income amount and the taxpayer's characteristics.

Personal Income Taxes

Taxes levied on individuals or households based on their income level, contributing to government revenue.

Dividends

Dividends are payments made by a corporation to its shareholders, usually derived from the company's profits, as a way to distribute a portion of the earnings back to investors.

Double Taxation

A taxation principle referring to income taxes paid twice on the same source of earned income, often seen in international business or when corporate income is taxed both at the corporate and personal levels.