Topic 20- Positive Externalities

Question 1

Private benefits

Answer 1

Benefits enjoyed by the first party e.g

• healthcare
• vaccinations
• education

Question 2

What government do to correct market failure

Answer 2

• subsidies
• provision of these goods
• regulations e.g illegal for children to not attend school

Question 3

Positive externality diagram

Answer 3

Cost, benefit  |  
                       |
                       |
                       |
                       |
                       |\_\_\_\_\_\_\_\_\_\_\_\_\_\_
                                                  Quantity

Question 4

Positive externalities

Answer 4

Benefits or the spillover enjoyed by third parties

Question 5

Social benefits:

Answer 5

enjoyed by third parties