Question 1
What is a positive externality in economics?
Question 2
Which of the following is the best example of a positive consumption externality?
Question 3
In the presence of a positive externality, how does the market equilibrium quantity usually compare with the socially optimal quantity?
Question 4
What is the main reason positive externalities lead to underproduction in a free market?
Question 5
Which intervention is most likely to help increase consumption of a good with positive externalities?
