Asked by Johnathan Wagner on Jun 26, 2024
Verified
Which activity generates a positive externality?
A) You buy a new car and find $5,000 in the door panel.
B) Your next-door neighbor mows the lawn at 6 A.M.
C) Your next-door neighbor installs a bat house,and the bats eat mosquitoes.
D) Joe buys health insurance but decides not to take the time to get a flu shot.
Bat House
A man-made structure designed to provide roosting sites for bats, facilitating natural pest control and biodiversity.
- Discern advantageous externalities alongside exemplars of conduct leading to their emergence.
Verified Answer
BM
Blake MorrisJun 28, 2024
Final Answer :
C
Explanation :
Installing a bat house generates a positive externality because the presence of bats helps to control the mosquito population, which benefits not only the neighbor who installed the bat house but also the entire community by reducing the spread of diseases like West Nile virus.
Learning Objectives
- Discern advantageous externalities alongside exemplars of conduct leading to their emergence.