Which of the following would be an external benefit? Select one: 1. pollution in a stream from a manufacturing process 2. an oil spill 3. abundance of a carnivorous fish species around a crab cleaning facility 4. purification of sewer water after being used to grow plants in a hydroponic garden
The correct answer and explanation is:
The correct answer is: 3. abundance of a carnivorous fish species around a crab cleaning facility.
Explanation:
An external benefit, also known as a positive externality, occurs when a third party (someone who is not directly involved in the activity) benefits from the actions of others without paying for it. In this case, the abundance of carnivorous fish around the crab cleaning facility is an example of an external benefit because the fish species are indirectly benefiting from the activities of the cleaning process.
The crab cleaning facility likely provides an environment that is attractive to carnivorous fish. These fish may be drawn to the facility because of the waste or scraps produced during the cleaning of crabs, which provide them with a food source. This is a positive externality because the fish are benefiting from the actions of the crab cleaning facility, but they are not involved in the facility’s commercial activities and do not pay for the benefits they receive.
Now, let’s analyze the other options:
- Pollution in a stream from a manufacturing process: This is a negative externality, not a benefit. Pollution harms the environment and other parties who do not benefit from the manufacturing process but suffer from its harmful effects.
- An oil spill: This is also a negative externality. An oil spill causes environmental damage, harming marine life, ecosystems, and local communities, which is an unwanted side effect of industrial activities.
- Purification of sewer water after being used to grow plants in a hydroponic garden: This could be considered a positive externality in some cases, as it may result in cleaner water being returned to the environment. However, the focus of the question is on direct external benefits to a third party, so this is less of a clear-cut example than the abundance of fish in option 3.
In conclusion, external benefits occur when activities or processes create positive side effects for others who are not directly involved, as seen in the fish population thriving around the crab cleaning facility.