Asked by Tajmia Muhammad on Jul 30, 2024
Verified
A positive externality is one in which there is an external benefit bestowed on a third party.
Positive Externality
Positive Externality occurs when a transaction or activity benefits a third party not directly involved, like the societal benefit of education or vaccinations.
External Benefit
A benefit that an individual or firm confers on others without receiving compensation.
- Acquire knowledge on the value of public goods, the effects of externalities, and the differing needs of the private versus public sectors.
Verified Answer
CN
Chicken NuggetsAug 04, 2024
Final Answer :
True
Explanation :
A positive externality occurs when the consumption or production of a good or service benefits a third party who is not directly involved in the transaction. Examples include vaccinations, education, and beautification projects that improve the overall well-being of society beyond just the individual purchaser or producer.
Learning Objectives
- Acquire knowledge on the value of public goods, the effects of externalities, and the differing needs of the private versus public sectors.
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