An Example of an Activity That Creates a Positive Consumption

question 95

Multiple Choice

An example of an activity that creates a positive consumption externality is

• A)logging,which pollutes rivers.
• B)locating beehives next to an orange orchard.
• C)smoking,which harms the health of a bystander.
• D)a flu vaccination.
• E)a noisy party.

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Definitions:

Japanese Yen

The official currency of Japan, represented symbolically as ¥ and known for its role in international finance and trade.

US$ Appreciates

A situation where the US dollar increases in value compared to other currencies, making foreign goods and services cheaper for US consumers.

Exchange Rate

The Exchange Rate is the value of one currency for the purpose of conversion to another.

Respective Distributions

The allocation or dissemination of items, resources, or property among recipients according to a plan or process.