Which of the Following Is an Example of a Positive

question 354

Multiple Choice

Which of the following is an example of a positive externality?

• A) something obtainable at a zero price
• B) a lower crime rate for a community in which residents receive more education
• C) increased purchases of landscaping services by a homeowner that boost a neighbor's property value
• D) a discount for consumers buying in large quantity

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Definitions:

Opt Out

The act of choosing not to participate in an activity, service, or agreement, often referring to the decision by an individual or organization to not conform to a standard, policy, or regulation.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual amount they receive, due to higher market prices.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that sellers are willing to supply.

Demand Curve

A line on a graph that illustrates the quantity of a product that consumers are willing and able to purchase at various price points.