An externality arises when one economic agent's actions affect the welfare of others in ways that are not reflected in market prices. Which one of the following could be an example of a positive consumption externality? Select one: O Noise from a neighbouring household's music system. Smells from a nearby waste recycling centre. Protection from a measles epidemic through high take-up of vaccinations. Acid-rain damage to trees due to industrial carbon dioxide emissions.
An externality arises when one economic agent's actions affect the welfare of others in ways that are not reflected in market prices. Which one of the following could be an example of a positive consumption externality? Select one: O Noise from a neighbouring household's music system. Smells from a nearby waste recycling centre. Protection from a measles epidemic through high take-up of vaccinations. Acid-rain damage to trees due to industrial carbon dioxide emissions.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section: Chapter Questions
Problem 1PA
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