Kathryn spends hours each day tending to her gardens and landscaping, and sweeping leaves from her cul-de-sac. Prospective homebuyers increase their desire to live on this street, increasing all home values on the street. Kathryn's neighbors are benefiting from a(n)

Question

Quizplus · Accepted Answer

Kathryn's gardening and cleaning efforts enhance the attractiveness and value of her neighborhood, which benefits her neighbors without them directly paying for these improvements. This is an example of an external benefit, where third parties receive positive effects from an activity they are not involved in.

Kathryn Spends Hours Each Day Tending to Her Gardens and Landscaping