You are the County Commissioner of Hazard County. Local business leaders are thrilled that Ms. Daisy has planted a panorama of flowers around her store front designed to look like cute kittens. Tourists have been coming from neighboring towns to see the flowers, and this tourism has been increasing business activity for many businesses. The local business leaders would like you to convince Ms. Daisy to plant more flowers so that tourism continues to increase.
Refer to the scenario above. The business generated for other stores by Ms. Daisy's flower display is an example of a:______

Positive externalities are events that occur when the production (or the consumption) of a good or service benefits third parties, most of the times involuntarily.

In this scenario, the panorama of flowers planted by Mr. Daisy generated an increase in business activity related to tourists coming to see Ms. Daisy's flowers.

Answer Link

hephzigirl hephzigirl · Answer 2 · 2019-11-20T10:54:13+01:00

Answer:

positive externality

Explanation:

Positive Externality occurs when the creation or production of a good causes a benefit to a third party. For example:

A farmer who grows apple trees for a living provides the beekeeper some benefit. The beekeeper gets a good source of nectar to help make more honey.

The panorama of flowers planted by Mr. Daisy caused an increase in business activity related to tourists coming to see Ms. Daisy's flowers.