Question

12.1 the economics of pollution and command - and - control regulation
due wednesday by 11:59pm points 100 submitting an external tool
knewton alta
← em 2025 fall - ecn212 10230
12.1 the economics of pollu...
current objective
identify examples of positive and negative externalities
question
which of the following is an example of a positive externality?
select the correct answer below:
○ khalid buys a bmw and the driving experience is even better than he expected.
○ gunter practices on his drum set in his apartment and his neighbors are kept awake by the music.
○ marissa enjoys her trail hike and decides to take dozens of photos along the way.
○ bob paints a nature scene on a large canvas at the park and people passing by stop to watch him paint.

Explanation:

A positive externality occurs when a third - party benefits from an economic activity.

• In the case of Khalid buying a BMW, it only affects Khalid (no third - party benefit).
• Gunter's drumming is a negative externality as it harms neighbors.
• Marissa taking photos on her hike is a personal activity with no clear third - party benefit.
• Bob painting at the park, where people passing by stop to watch (benefit from his activity), is a positive externality.

Answer:

Bob paints a nature scene on a large canvas at the park and people passing by stop to watch him paint.