Question

Which of the following are examples of positive externalities?

a. You are a bird watcher, and your neighbor puts up birdhouses and gardens to attract birds.
b. Your roommate is a smoker, but you are a nonsmoker.
c. Investments in private education raise your country's standard of living.

Answer 1

Option “a” and “c”.

Step-by-step explanation:

Option “a” and “c” are the positive externalities because the positive externalities are the ones that benefit to others. The activity of one person benefits the other person. So in the option, “A” neighbor put the birdhouses that will attract the birds that means another person who is a bird watcher will be benefited. Secondly, the investment in education will increase the country's GDP and the many people will be benefited from the education.