Your neighbor fixes up his house, mows the lawn and plants a few trees in his front yard. Due to these actions, the value of your house also increases. This is an example of

Question

Quizplus · Accepted Answer

This is an example of a positive externality, where an action taken by one party (your neighbor improving their property) results in a benefit to others (the increase in value of your house) without a direct cost to you.

Your Neighbor Fixes Up His House, Mows the Lawn and Plants