From the List Below, the Best Example of a Positive

question 173

Multiple Choice

From the list below, the best example of a positive externality is

• A)forbidding the use of cell phones in public
• B)planting trees along the pavement, which adds beauty and creates shade
• C)banning the sale of candy in elementary schools
• D)prohibiting street parking in all residential neighbourhoods

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Definitions:

Total Revenue

Total Revenue is the full amount of income generated by the sale of goods or services before any costs are deducted.

Perfectly Elastic Demand

Demand in which quantity drops to zero at the slightest increase in price.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to analyze the effect of one variable change while holding others constant.

Perfectly Competitive Industry

A market structure where there are many buyers and sellers, products are identical, and there is free entry and exit from the market.