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Question

Which of the following is a positive externality?


A

Smoke detectors

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B

Vaccines

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C

Education

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D

Global Warming

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Solution

The correct options are
A

Smoke detectors


B

Vaccines


C

Education


When an individual benefits with smoke detectors, vaccines, and education, the society benefits as well. A positive externality occurs when the consumption or production of a good causes a benefit to a third party. Therefore options a, b and c are correct.


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