Which of the following expenditures to enhance productivity is most likely to emit a positive externality ?
Correct answer: B. Naila pays her university tuition fees.
- A. Megabank buys a new computer
- B. Naila pays her university tuition fees.
- C. OGDC leases a new oil field
- D. Indus Motors buys a new drill press
Explanation
Education creates benefits beyond the student, such as a more skilled workforce and knowledge spillovers, so tuition-funded education can generate a positive externality. A firm's private purchase of equipment or an oil lease mainly benefits that firm.
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