A beautiful garden that increases the value of the homes in the neighborhood is considered
A) An inferior good
B) A positive externality
C) A negative externality
D) A normal good

Question

Quizplus · Accepted Answer

A beautiful garden that increases the value of the homes in the neighborhood is a positive externality because it provides benefits to the community beyond the private benefits enjoyed by the garden owner. The increase in property value benefits not only the owner but also other homeowners in the neighborhood.

A Beautiful Garden That Increases the Value of the Homes