Which of the following describes a positive externality?

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Study for the Arizona State University (ASU) SOS110 Sustainable World Final. Dive into a world of knowledge with detailed questions, and clear explanations. Prepare and excel in your exam!

A positive externality occurs when an activity or decision by an individual or organization benefits others without them paying for that benefit. In this context, beekeeping is a prime example of a positive externality.

When beekeepers manage their hives for honey production, they not only produce honey that can be sold, but they also significantly contribute to the environment by promoting pollination. Pollination is crucial for many plants, including crops that serve as food for humans and animals. The bees' activity enhances the ecosystem by improving plant diversity and agricultural yields, thus benefiting farmers and the wider community. This aligns with the definition of positive externalities, as the advantages are enjoyed by those beyond just the beekeepers themselves without direct compensation.

In contrast, other options reflect negative consequences or externalities. Increased air pollution from a factory is detrimental, creating negative health impacts for the surrounding community. Overfishing disrupts local fish populations, which can lead to ecological imbalances and further affect fishing communities. Finally, losing access to clean water directly impacts a community’s health and quality of life, showcasing the detrimental aspects of unsustainable practices. Thus, beekeeping presenting a beneficial side effect for both the environment and agriculture stands out as the clear example of a

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