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question 4 (multiple choice worth 4 points) (lc) which of the following could lead to a positive externality on the international scale? foreign aid eminent domain social welfare unregulated manufacturing
Positive externality refers to a situation where an action benefits a third - party not directly involved. Foreign aid can lead to positive externalities on an international scale. For example, if a developed country provides foreign aid in the form of infrastructure building (like roads, schools) in a developing country, it can improve the overall economic and social conditions of that country. This can have spill - over effects such as increased trade opportunities (if better roads lead to easier transportation of goods for export) which can benefit the donor country and other trading partners. Eminent domain (taking private property for public use) is more of a domestic legal concept. Social welfare is usually a domestic policy. Unregulated manufacturing often leads to negative externalities like pollution.
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Foreign aid