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:

Large Businesses

Companies that typically operate on a large scale with significant asset values, large number of employees, and high volume of sales and production.

Corporations

Legal entities that are separate and distinct from their owners, with the ability to own assets, incur liabilities, and engage in business activities.

Partnership

A legal form of business operation between two or more individuals who share management and profits.

Business-related Debts

Financial obligations incurred in the course of conducting business activities, such as loans, lines of credit, and other forms of borrowing.