Question

The city council allocates funds for road repair. Which of the following circumstances would be a positive externality?

Citizens spend less money repairing punctured and torn tires.

Gas stations throughout the city reduce fuel prices.

Municipal taxes increase to fund added services.

Traffic flow in the city improves.

Answer 1

D: Traffic flow in the city improves

Step-by-step explanation:

Answer 2

"Traffic flow in the city improves" is the one circumstances among the choices given in the question that would be a positive externality. The correct option among all the options that are given in the question is the fourth option or the last option. I hope that this is the answer that has come to your great help.