Which of the Following Is a Real-World Example of a Positive

question 23

Multiple Choice

Which of the following is a real-world example of a positive externality?

• A)You are craving a soda for lunch. However, the customer ahead of you in line at the hot dog stand buys the last can.
• B)National defense is available even for people who do not pay income taxes.
• C)A person seated in a non-smoking section of a restaurant decides to sneak a few puffs of a cigarette.
• D)A child receives a vaccination to prevent the spread of measles.

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Definitions:

Gas Mileage

A measure of a vehicle's fuel efficiency, typically represented as miles per gallon (MPG).

Kilowatt-Hours

A unit of energy measurement equivalent to the power consumption of one thousand watts for one hour.

Linear Model

A statistical method that describes the relationship between two or more variables using a straight line.

Regression

A statistical method used to understand the relationship between a dependent variable and one or more independent variables.