An Example of a Beneficial Externality Is

question 122

Multiple Choice

An example of a beneficial externality is

• A)airport noise.
• B)a blooming curbside bed of violets.
• C)pollution of a fishing lake.
• D)freeway congestion.

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Definitions:

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost compared to its competitors.

Monetary Cost

Refers to the explicit financial cost of conducting a business activity or completing a transaction, measured in units of currency.

Comparative Advantage

The ability of a party to produce a particular good or service at a lower opportunity cost than others, enabling trade benefits.

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors with the same resources.