Discussion
Beehives of honey producers is an example of:
Answer: A
A beekeeper's hives benefit the owners of nearby orchards, whose flowers are pollinated, without any payment. This is a benefit to third parties arising from production, so it is a positive production externality. The answer is option A.
Because the benefit is not priced the market produces too few hives, which is the case for a subsidy. The honey and orchard example was used by J. E. Meade in 1952.
No comment is present. Be the first to comment.
Loading…
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development