The economic concept that is applied in the statement is D. positive externality.
What is a positive externality?
Positive externality refers to the production and consumption of a good or service that benefits some other third parties, who are not directly involved in the transaction.
Some examples of activities that create positive externality include:
- Education
- Vaccination
- Local investments
- Building of infrastructure.
Thus, the economic concept that is applied in the statement is D. positive externality.
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