Article Summary
According to a study by the Center for Neighborhood Technology, homes located within one-half mile of frequently-used public transportation held their value much better during the recent housing market downturn than did those without easy access to public transportation, and the greater home values reflect greater demand for neighborhoods in close proximity to public transportation. In addition to higher home values, the study found that close proximity to public transportation offers lower transportation costs, a wider variety of travel options, and access to more employment opportunities.
Source: Meg Handley, "Study: Proximity to Public Transit Boosts Home Values," U.S. News & World Report, March 22, 2013.
-When there is a negative externality, the competitive output is more than the economically efficient output level.

Question

Quizplus · Accepted Answer

A negative externality occurs when a third party is affected by a transaction they are not involved in, leading to overproduction in a competitive market compared to the socially optimal level, as the external costs are not reflected in the market price.

Article Summary According to a Study by the Center for Neighborhood Technology