Which of the Following Describes a Positive Externality

question 1

Multiple Choice

Which of the following describes a positive externality?

• A)John Henry paints the outside of his house in order to increase its market value just before he puts the house up for sale.
• B)People who do not attend college still benefit from others who receive a college education.
• C)The government imposes a tax on cigarettes in order to discourage smoking among teenagers.
• D)Mary volunteers to drive her neighbor's children to soccer practice.

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Definitions:

Sale of Goods Act

Legislation that governs the sale of goods, defining obligations, rights, and warranties between buyers and sellers.

Fit for Purpose

The standard that ensures a product or service meets its intended use and satisfies customer requirements.

Breach of Contract

The failure to perform any term of a contract, written or oral, without a legitimate legal excuse.

Contaminated Salad

Salad that has been tainted with harmful substances or pathogens, such as bacteria or pesticides, posing health risks to consumers.