ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A positive externality is when the consumption of a good has a positive effect or external value on society Example: Flu shots. When people get vaccinated, other people that did not pay for the flu shots also get a benefit because they have a lower chance of getting the flu.

Detailed explanation-2: -Influenza is an infectious disease whereby the actions of one infected individual impose negative externalities on others by increasing risk of infection, while air pollution is a negative externality of economic activity.

Detailed explanation-3: -This paper started from the widely accepted premise by economists writing on vaccines, that vaccines generate a positive externality. The private and social marginal benefits of vaccines do not perfectly align creating room for policy interventions to improve outcomes for everyone involved.

Detailed explanation-4: -One example of a positive externality is the market for education. The more education a person receives, the greater the social benefit since more educated people tend to be more enterprising, meaning they bring greater economic value to their community.

Detailed explanation-5: -Flu vaccination is a good example of a positive consumption externality. When external costs are present, the private market produces less than the efficient level of output.