A homeowner planting an attractive garden in front of his house creates ________. A bakery baking bread creates ________.

Question

Quizplus · Accepted Answer

A homeowner planting an attractive garden in front of his house creates a positive consumption externality as it benefits the entire neighbourhood or passerby. The bakery baking bread creates a positive production externality by improving the air quality of the surrounding area with the aroma of freshly baked bread.

A Homeowner Planting an Attractive Garden in Front of His