Question

Which of the following activities create positive externalities? Group of answer choices An excavation firm pollutes a local stream with acid rock drainage. A student talks on her cell phone during class. Late-night road construction begins on a new bridge. As a consequence, traffic is rerouted past your house while the construction takes place. You and your friends volunteer to plant wildflowers along the local highway.

Answer 1

Answer:

The activities that creates positive externalities among the options include:

1. Late-night road construction begins on a new bridge. As a consequence, traffic is rerouted past your house while the construction takes place.
2. You and your friends volunteer to plant wildflowers along the local highway.

Explanation:

Positive Externality occurs when the consumption or production of a good causes a benefit to a third party.

Take for instance, Government grants and subsidies to producers of goods and services that generate external benefits will reduce costs of production, and encourage more supply.

The positive externalities includes supply of merit goods such as healthcare, education, and social housing.

1. Late-night road construction begins on a new bridge. As a consequence, traffic is rerouted past your house while the construction takes place. The positive externality here is easy access to transport.
2. You and your friends volunteer to plant wildflowers along the local highway. This will cause your relationship with your friends  to blossom and when the plants grow, it will purify the air and beautify the environment.