Question

multiple choice question
a ______ is the unpaid benefit of an activity that is enjoyed by a third party.
options:

• subsidy
• tariff
• positive marginal benefit
• positive externality

Explanation:

A positive externality is defined as an unpaid benefit from an activity that accrues to a third party not involved in the original activity. A subsidy is a payment to support an activity, a tariff is a tax on imports, and positive marginal benefit refers to additional benefit for the direct participant, not an unpaid third-party benefit.

Answer:

D. positive externality