An Example of a Good with a Positive Externality Is

question 141

Multiple Choice

An example of a good with a positive externality is

• A)acid rain.
• B)an oil spill.
• C)air pollution.
• D)a contagious disease.
• E)research.

---

Definitions:

Trade

The exchange of goods, services, or both within or between countries.

Invisible Hand

A metaphor for the self-regulating nature of the marketplace that guides individuals to unintentionally benefit society through the pursuit of their own interests.

Adam Smith

An 18th-century Scottish economist and philosopher best known for his theories on free market economies and the invisible hand concept.

The Wealth of Nations

A seminal book by Adam Smith, regarded as the foundation of modern economic theory, which analyzes the nature and causes of the wealth of nations.