ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Purchasing a pass for an amusement park
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Being disturbed by neighboring construction noise
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Dumping waste on someone else’ s property
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Enjoying watching birds at a neighbor’s bird feeder
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Detailed explanation-1: -Answer and Explanation: Flowers in your neighbor’s front yard is a perfect example of a positive externality.
Detailed explanation-2: -A positive externality occurs when a benefit spills over. So, externalities occur when some of the costs or benefits of a transaction fall on someone other than the producer or the consumer.
Detailed explanation-3: -Light pollution is an example of an externality because the consumption of street lighting has an effect on bystanders that is not compensated for by the consumers of the lighting.
Detailed explanation-4: -Getting a vaccination provides a benefit to other people in society because you do not spread infectious diseases. A decision to stop smoking causes benefits to other people in society who longer suffer passive smoking. More items •28-Oct-2019