Question

In: Economics

A benefit of an activity received by people not participating in the activity is called a(n)

A benefit of an activity received by people not participating in the activity is called a(n)

Solutions

Expert Solution

Assuming the question is in terms of economics, the answer is

Positive Externality

Externality is a phenomena in which a proportion of cost (negative externality) or benefit (positive externality) an activity is received by someone who did't participate in the activity. In case a cost is incurred it is termed as negative externality, while in case of benefit is received, it is termed as positive externality.

Consider education - a learning activity, in an underdeveloped country. In poor area, if there is an initiative of education, and children are educated by any welfare institution or government, that education would not only affect the child individually, but also would affect his family in a positive manner. The household people might learn somethings which they didn't knew before, that can save them in many ways, such as importance of hygene like washing hands before having food, or caring for mortals, etc. This is the case of positive externality, as even though the adult didn't attend the education, they did received the benefit. Education also reduces crime, and hence society as a whole benefits. Another examples of positive externality are low income people who do not pay taxes does recieve state welfare, military-defence protention, and enjoy many other public goods, like street light, roads, etc.

The opposite of positive externality is negative externality. Suppose a polluting industry is placed in a poor agricultural area, and it will pollute the land and or water and or by dumping wastes and smokes of byproducts. People who don't work and have no relation to the industry would also be affected in an adverse manner. Yet some proportion of the population now have more stable income, but many others who didn't participate in the activity are affected. Farmers doing pisciculture and agriculture would be affected by dead fishes or bad crop, or general public breathing polluted air would incur several health cost. All kinds of pollution which are not natural (like pollution by volcanic eruption), are examples of negative externality.


Related Solutions

What economic benefit do the students receive by participating in college athletics?
What economic benefit do the students receive by participating in college athletics?
According to Smith, what effect does the number of people participating in the economy have on...
According to Smith, what effect does the number of people participating in the economy have on society’s wealth? Why?
An extra benefit supplementing an employee's money wage or salary is called Fringe Benefit. Examples are...
An extra benefit supplementing an employee's money wage or salary is called Fringe Benefit. Examples are a company’s car, private health care, etc. What Fringe Benefits do you get from your employer in your organizations? Describe in detail.
An extra benefit supplementing an employee's money wage or salary is called Fringe Benefit. Examples are...
An extra benefit supplementing an employee's money wage or salary is called Fringe Benefit. Examples are a company’s car, private health care, etc. What Fringe Benefits do you get from your employer in your organizations? Describe in detail.
In a study on the physical activity of people, researchers measured overall physical activity as the...
In a study on the physical activity of people, researchers measured overall physical activity as the total number of registered movements (counts) over a period of time and then computed the number of counts per minute (cpm) for each subject. The study revealed that the overall physical activity of obese people has a mean of μ=322cpm and a standard deviation σ=92cpm. In a random sample of 100 obese people, consider x ̅, the sample mean counts per minute. Now suppose...
this Q11) Defined benefit pension plan is a plan in which the income to received in...
this Q11) Defined benefit pension plan is a plan in which the income to received in future is known and guranteed. They provide income until your death , when in retirement. In case of Defined benefit pension plan, the investment risk is borne by the employer, so the employee need not to worry about anything. Where as Defined contribution plan is primiraly funded by employee and, employer can also contribute to a certain amount(only if he wants to invest). The...
A _________ surplus is a net benefit that everyone receives from participating in the market and is measured by the sum of consumer surplus and producer surplus without __________.
A _________ surplus is a net benefit that everyone receives from participating in the market and is measured by the sum of consumer surplus and producer surplus without __________.Group of answer choices:Producer: GovernmentTotal: GovernmentTotal: TradeConsumer: Trade barriers
The following are standardized cognitive scores for n=8 younger people and n=8 older people: Younger Older...
The following are standardized cognitive scores for n=8 younger people and n=8 older people: Younger Older 8 7 6 5 6 8 7 5 8 7 7 6 8 8 8 5 Calculate SS, variance, and standard deviation for both sets of people. Which group is more consistent? (less variability)
who are the people that will benefit in the study of research topic "Impact of Variation...
who are the people that will benefit in the study of research topic "Impact of Variation Order in Construction Projects?"
A contract formed by two parties with the intent to benefit another party is called: A)...
A contract formed by two parties with the intent to benefit another party is called: A) A three-way contract. B) A three party contract. C) A third party beneficiary contract. D) Invalid.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT