An Example of a Positive Externality Is _____

question 68

Multiple Choice

An example of a positive externality is _____

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

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Definitions:

Ethical Development

The process of developing and understanding moral principles that govern a person's behavior or conducting of an activity.

Conventional

Based on or in accordance with what is generally done or believed.

Preconventional

A stage in moral development characterized by behavior driven by the desire to avoid punishment and seek personal gain, typically seen in young children.

Social Responsibility

Business’s consideration of society’s well-being and consumer satisfaction, in addition to profits.