Question

Which of the following is the best example of a product or service that generates external benefits? Option 1: Private security services for a corporation Option 2: Luxury cars with advanced entertainment systems Option 3: Public education system Option 4: High-end fashion clothing

Answer 1

Public education system

Step-by-step explanation:

The public education system is the best example of a product or service that generates external benefits. Public education provides benefits not only to the individuals receiving the education but also to society as a whole. A well-educated population contributes to economic growth, social stability, and a more informed and engaged citizenry. These benefits extend beyond the individual student and have positive spillover effects on the wider community.