Music you love reaching you free every night is given as an example of a:
APollution charge
BPositive externality
CNegative externality
DCommand regulation
Answer & Solution
Correct answer: B. Positive externality
1. Spillovers are not always harmful.
2. If you hate the music, it would be a negative externality.
3. If you love country music, what amounts to a series of free concerts is different.
4. That would be a positive externality.
_Source: OpenStax Principles of Microeconomics for AP Courses 2e (CC BY 4.0), Ch 12 'Environmental Protection and Negative Externalities'_
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