Question

Match List-I with List-II:

List-I(Scenarios)		List-II(Type of Externality)
A	Apple farmer who has his orchard next to a beekeeper	I	Positive Consumption
B	Villages downstream from a manufacturing plant	II	Negative Consumption
C	An unvaccinated family living next door to a family who has received the COVID-19 vaccination	III	Positive Production
D	Rice farmer who has his field next to a chemical plant	IV	Negative Production

Choose the correct answer from the options given below

• A. A-(III), B-(II), C-(I), D-(IV)
• B. A-(II), B-(III), C-(IV), D-(I)
• C. A-(I), B-(IV), C-(III), D-(II)
• D. A-(I), B-(II), C-(III), D-(IV)

Hint:

Matching externalities with their types helps in identifying whether the effects are positive or negative for consumption or production.

Answer 1

The Correct Option is A

An apple farmer benefiting from a nearby beekeeper is a positive externality due to increased pollination (positive production). Hence, A corresponds to (III).
- Villages down stream from a manufacturing plant are affected by pollution, creating a negative externality (negative consumption). Hence, B corresponds to (II).
- An unvaccinated family benefiting from a vaccinated neighbor has positive consumption effects. Hence, C corresponds to (I).
The rice farmer near a chemical plant is harmed by negative production externalities (pollu tion). Hence, D corresponds to (IV). 
Hence, the correct answer is (b)