Economics · Externalities & Public Economics
Identify the statements that represent Positive Externalities: (a) People living in nearby areas suffer from deteriorating air quality due to factory emissions. (b) Real estate prices likely increase due to the construction of a metro railway line nearby. (c) Research and development creates knowledge spillovers that benefit society as a whole. (d) People living near an airport suffer from high noise pollution levels.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Only (a)
- 2(a) and (d)
- 3(b) and (c)✓
- 4(a) and (b)
Correct answer
(b) and (c)
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