Which of the following is an example of a positive externality that would result from converting the inner part of a city to a pedestrian only area?(1 point)

Question

Responses

the reduction in gas prices for people who work in the area
the reduction in gas prices for people who work in the area

the decrease in pollution in the city
the decrease in pollution in the city

a decrease in business in the area
a decrease in business in the area

the increase in the commute time for people who work in the area

Answer 1

The correct response is:

the decrease in pollution in the city

This is an example of a positive externality because it reflects a benefit to the broader community resulting from the decision to convert the inner part of the city to a pedestrian-only area. Reduced vehicle traffic typically leads to lower emissions and improved air quality, benefiting everyone in the vicinity.