Practice Positive Externalities (9.1) - Microeconomics - IB 10 Individuals & Societies - Economics

Practice: Positive Externalities

Lesson 9.1Microeconomics

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9 questions

Flashcard drill
3 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
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Quiz
3 questions · about 2 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
Explain what a positive externality is in your own words.
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Think about benefits that impact people beyond the main participants in a transaction.
Question 2.
What is one example of a positive externality?
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Consider activities that benefit the community.
3Question 3.
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
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Think about the results of an activity that benefit the wider community.
4Question 4.
True or False: Positive externalities lead to market overproduction.
- True
- False
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Remember how the market measures costs versus social benefits.
Question 5.
A government is considering increasing funding for renewable energy initiatives that have positive externalities. Discuss the potential benefits and risks of this decision.
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Consider both environmental and economic perspectives.
Question 6.
Analyze how public transportation investments may create positive externalities in urban areas.
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Think about the broader socio-economic effects of improved transportation.

5 more questions in this section. Enroll free to practise them all.