Question

Question
What is a positive externality?(1 point)
Responses

Positive externalities occur whenever there is a social benefit to a good or service.
Positive externalities occur whenever there is a social benefit to a good or service.

Positive externalities occur when a service is available without cost.
Positive externalities occur when a service is available without cost.

Positive externalities occur whenever there is a private benefit to a good or service.
Positive externalities occur whenever there is a private benefit to a good or service.

Positive externalities occur when there is both a social benefit and private benefit from a good or service.

Answer 1

Correct answer: "Positive externalities occur whenever there is a social benefit to a good or service."

Brief explanation: a positive externality exists when a transaction or activity provides benefits to third parties beyond the private benefits to the buyer or seller (e.g., vaccination, education, beekeeper's bees helping nearby crops).