QUESTION IMAGE
Question
- when a neighbor pays for landscaping services and creates beautiful scene for you to enjoy, that is an example of a ______ externality. real negative positive none of the above
Brief Explanations
An externality is a cost or benefit caused by a producer that is not financially incurred or received by that producer. A positive externality is a benefit enjoyed by a third party not directly involved in the transaction. Here, the neighbor's landscaping provides a beautiful scene for others to enjoy without cost, which is a positive benefit to third parties.
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positive