Which of the Following Is an Example of an External

question 45

Multiple Choice

Which of the following is an example of an external benefit?

• A)The benefit to a consumer from watching a film on DVD
• B)The improvement in air quality resulting from industrial development in an urban area
• C)The increase in the value of a property belonging to a neighbor when you hire a landscaper to beautify your front yard
• D)The reduction in property values when a new airport is built in a neighborhood, increasing the connectivity of the area with other cities
• E)The increase in the demand for a good when the price of its substitute good increases

---

Definitions:

Strategic Philanthropy

The practice of companies aligning their charitable activities with their business goals, creating mutual benefits for both their stakeholders and the community.

Superficial Discounting

Offering discounts that appear significant but have minimal real impact on the overall cost or value.

Sale Price

The final selling price of a product or service after any discounts or promotions are applied.

Normal Price

The standard or usual price of a product or service, often determined by market conditions and cost of production.