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John Paints the Exterior of His House And,as a Result,his

Question 76

Multiple Choice

John paints the exterior of his house and,as a result,his neighbour Christine is able to sell her home for $5,000 more than she could have before.John's house-painting:


A) creates a negative externality for Christine.
B) shows John is a free rider.
C) results in an efficient market outcome for both.
D) creates a positive externality for Christine.
E) was poorly done.

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