Question

Question 3 1 pts Josiah installed a metal sculpture in his front yard. A positive externality arises if the sculpture increases the value of other properties in the neighborhood. increases the value of Josiah's home. is visually unappealing to Josiah's neighbors. O creates a safety hazard for neighborhood children. Question 4 1 pts

Answer 1

Positive externality is defined as that scenario when one person or parties action has a positive impact(benefit) on third party.

Josiah installed a metal sculpture in his front yard. This will create a positive externality when it increases the value of other properties in the neighborhood.

Option A. Is correct.

Second option is not correct because it has increased the value of Josiah who has installed the metal sculpture. Thus, no positive externality.

Third option and forth option is regarding negative externality as it is not liked by neighbours.