Figure 5-6

Figure 5-6 shows the market for measles vaccinations, a product whose use generates positive externalities.
-Refer to the Article Summary above.Assuming the findings are correct and all else equal, higher increases in home values which result from close proximity to a Trader Joe's are an example of a ________ due to the location of the Trader Joe's.

Question

Figure 5-6
  
Figure 5-6 shows the market for measles vaccinations, a product whose use generates positive externalities.
-Refer to the Article Summary above.Assuming the findings are correct and all else equal, higher increases in home values which result from close proximity to a Trader Joe's are an example of a ________ due to the location of the Trader Joe's.

Quizplus · Accepted Answer

Positive externalities are benefits that spill over to third parties who are not directly involved in the production or consumption of a good. In this case, the proximity to a Trader Joe's leads to higher increases in home values, benefiting homeowners in the area who did not directly contribute to the opening or operation of the store. This is an example of a positive externality.

Figure 5-6 Figure 5-6 Shows the Market for Measles Vaccinations, a Product