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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
Explain what a positive externality is in your own words.
💡 Hint: Think about benefits that impact people beyond the main participants in a transaction.
Question 2
Easy
What is one example of a positive externality?
💡 Hint: Consider activities that benefit the community.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What best describes a positive externality?
- A. A cost incurred by third parties
- B. A benefit received by third parties
- C. A fee charged by the government
💡 Hint: Think about the results of an activity that benefit the wider community.
Question 2
True or False: Positive externalities lead to market overproduction.
- True
- False
💡 Hint: Remember how the market measures costs versus social benefits.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A government is considering increasing funding for renewable energy initiatives that have positive externalities. Discuss the potential benefits and risks of this decision.
💡 Hint: Consider both environmental and economic perspectives.
Question 2
Analyze how public transportation investments may create positive externalities in urban areas.
💡 Hint: Think about the broader socio-economic effects of improved transportation.
Challenge and get performance evaluation