Positive Externalities Are Created When

question 17

Multiple Choice

Positive externalities are created when

• A) other consumers reduce their demand for coffee and price thereby declines.
• B) farmers spray pesticide in their fields and it washes into the local river after the first rainstorm.
• C) your neighbor plants beautiful trees and flowers in her yard.
• D) you purchase the "Mona Lisa" and lock it in a vault.

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Definitions:

Environmental Problems

Issues affecting the natural environment, including pollution, climate change, deforestation, and loss of biodiversity.

Social Entrepreneur

An individual who establishes an enterprise with the aim to solve social problems or improve community well-being through innovative solutions.

Solar Energy

A renewable energy source derived from the sun's rays, used to generate electricity or heat.

Venture Philanthropy Funding

A type of funding that combines venture capital principles with philanthropy to invest in social ventures that aim to generate social impact alongside financial returns.