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1.3.2 Positive Consumption Externalities (Edexcel A-Level Economics Teaching PowerPoint)


Last updated 18 Sept 2023

This teaching powerpoint covers Positive Consumption Externalities

Positive consumption externalities, also known as positive spillovers, occur when the consumption of a good or service by one person benefits another person, but the benefit isn't reflected in the price of the good or service. A classic example of a positive consumption externality is education. When someone gets an education, they benefit from that education themselves, but they also benefit society by having more knowledge and skills that they can contribute to the economy. In this case, the benefits of education aren't fully reflected in the price that students pay for their education.

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