Question

A city government uses eminent domain to seize property for a new public high school complex. Which of the following statements best explains a potential positive externality? A green design uses local energy resources more efficiently. A homeowners association near the school changes its logo. Local businesses use eminent domain for their buildings. People near the new school start taking longer vacations.

Answer 1

Im pretty sure its A green design uses local energy resources more efficiently. Thats just a guess

Answer 2

The correct answer is A) a green design uses local energy resources more efficiently.

The statement that best explains a potential positive externality is a green design uses local energy resources more efficiently.

An eminent domain is a power that the United States government has to take private land for public use when there is a need to built something that benefits the community or a city. An externality is a side effect of an activity that could be business or industrial activity. This affection is with no cost for the other parties.

So when a city government uses eminent domain to seize property for a new public high school complex a potential positive externality could be a green design uses local energy resources more efficiently.