A well-maintained waterfront property that is enjoyed by other property owners is an example of
A)an inefficient allocation of resources.
B)a negative consumption externality.
C)a positive consumption externality.
D)a negative production externality.
E)a positive production externality.

Question

Quizplus · Accepted Answer

A well-maintained waterfront property that is enjoyed by other property owners is an example of a positive consumption externality. This is because the enjoyment that the other property owners get from the well-maintained waterfront property is an external benefit to them, and the owner of the waterfront property does not receive any compensation for providing this benefit.

A Well-Maintained Waterfront Property That Is Enjoyed by Other Property