Which of the following constitute examples of positive externalities:

Question

Quizplus · Accepted Answer

Seeing your neighbor's well-taken care garden can improve the appearance of the whole neighborhood and increase the value of the properties around it. It is an example of a positive externality because the benefit to the neighborhood exceeds the private benefit the neighbor receives for maintaining their garden.

Note: B, C, and D are not examples of positive externalities. The smoke from the barbecue affects the neighbor negatively, which is a negative externality, which means it imposes a cost on the neighbor without compensation. The loud music also affects the neighbor negatively, leading to noise pollution, and it is a detractor from the well-being of the neighborhood. Allowing weeds to grow is not an externality, as it is a personal choice and only affects the person's yard rather than the community.

Which of the Following Constitute Examples of Positive Externalities