Josiah installed a metal sculpture in his front yard. A positive externality arises if the sculpture
A)increases the value of other properties in the neighborhood.
B)increases the value of Josiah's home.
C)is visually unappealing to Josiah's neighbors.
D)creates a safety hazard for neighborhood children.

Question

​Josiah installed a metal sculpture in his front yard. A positive externality arises if the sculpture
A)​increases the value of other properties in the neighborhood.
B)​increases the value of Josiah's home.
C)​is visually unappealing to Josiah's neighbors.
D)​creates a safety hazard for neighborhood children.

Quizplus · Accepted Answer

A positive externality occurs when an action or decision creates benefits for third parties who are not directly involved in the action or decision. In this case, if Josiah's metal sculpture increases the value of other properties in the neighborhood, it is creating a positive externality.

​Josiah Installed a Metal Sculpture in His Front Yard

Josiah Installed a Metal Sculpture in His Front Yard