A nonprofit agency sets up a website to channel investments from all over the globe into microloans to support local farms, artisans, and other small businesses in developing nations. Which of the following would be a positive externality for the global environment?

(A) Fewer people move from rural to urban areas, reducing urban sprawl.

(B) More resources are consumed locally, reducing international shipping.

(C) More sustainable development encourages the use of nonrenewable resources.

(D) Genetically modified crops add vitamins to local foods, increasing health.

Question

Business

Nevaeh Chan

28 June, 10:33

A nonprofit agency sets up a website to channel investments from all over the globe into microloans to support local farms, artisans, and other small businesses in developing nations. Which of the following would be a positive externality for the global environment?

(A) Fewer people move from rural to urban areas, reducing urban sprawl.

(B) More resources are consumed locally, reducing international shipping.

(C) More sustainable development encourages the use of nonrenewable resources.

(D) Genetically modified crops add vitamins to local foods, increasing health.

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Answers (1)

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Ana Tanner · Answer 1

Answer: Under the given circumstances, the following would be a positive externality for the global environment: Fewer people move from rural to urban areas, reducing urban sprawl.

Urban sprawl can lead to several negative externalities such as : pollution, exploitation of natural resources at an exponential rate, unemployment etc.

Therefore, if fewer people move from rural to urban areas, this will reduce urban sprawl and further every other negative externality associated with it.

The correct option is (A)