Which of the following activities, if any, represents an external benefit?
A)The benefit to a consumer from watching a film on DVD.
B)The reduction in air quality resulting from industrial development in an urban area.
C)The increase in the value of property belonging to your neighbors when you hire a landscaper to beautify your front yard.
D)The reduction in property values when a new airport is built in a neighborhood.

Question

Which of the following activities, if any, represents an external benefit?
A)​The benefit to a consumer from watching a film on DVD.
B)​The reduction in air quality resulting from industrial development in an urban area.
C)​The increase in the value of property belonging to your neighbors when you hire a landscaper to beautify your front yard.
D)​The reduction in property values when a new airport is built in a neighborhood.

Quizplus · Accepted Answer

The increase in the value of property belonging to your neighbors when you hire a landscaper to beautify your front yard represents an external benefit. This is because the neighbors do not have to pay for the landscaper's services, but they still benefit from the improved aesthetics of the neighborhood.

Which of the Following Activities, If Any, Represents an External