The city council allocates funds for road repair. Which of the following circumstances would be a positive externality?

Citizens spend less money repairing punctured and torn tires.

Gas stations throughout the city reduce fuel prices.

Municipal taxes increase to fund added services.

Traffic flow in the city improves.

Question

The city council allocates funds for road repair. Which of the following circumstances would be a positive externality?

 Citizens spend less money repairing punctured and torn tires.

 Gas stations throughout the city reduce fuel prices.

 Municipal taxes increase to fund added services.

 Traffic flow in the city improves.

anonymous · Answer

@ArbabShah

anonymous · Answer

@RANE

anonymous · Answer

I guess A

anonymous · Answer

It could be A or B and im not sure which one to pick lol

anonymous · Answer

A or D i meant

anonymous · Answer

yes it can be D too as it smooth the traffic flow...

anonymous · Answer

@RANE  what do you think? i cant decide

anonymous · Answer

@ArbabShah your best guess would be A?

anonymous · Answer

Positive externality means that the third party benefits...ummm so my best guess would be D as traffic smooth out the people that did not get their tires bumped would benefit as they are the third party... so D finally :D