ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -In economics, there are four different types of externalities: positive consumption and positive production, and negative consumption and negative production externalities. As implied by their names, positive externalities generally have a positive effect, while negative ones have the opposite impact.

Detailed explanation-3: -Expert Answer. If a third party, that is who is not participating directly in a particular market transaction/activity, gains from the production or consumption of a commodity or service is referred to as a positive externality.

Detailed explanation-4: -Advertising. When McDonalds, Walmart, or some other big firm advertises, it solves a market failure. Education. The procurement of any form of education has the potential to benefit a third party. Insurance. Local Investment. Vaccinations / Personal Hygiene.