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AP® Microeconomics

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Moderate

Positive Externality: Example

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Which of the following is an example of a positive externality?

A

Unpleasant odor experienced by people living near poultry farms

B

Damage to public roads caused by trucks carrying overweight loads

C

"Herd" immunity that leads to protection from disease as a result of others being vaccinated against the disease

D

Economic profits that result from the market power of monopolies

E

Higher productivity of workers as a result of payment of efficiency wages