An Example of an Activity That Creates a Negative Consumption

question 101

Multiple Choice

An example of an activity that creates a negative consumption externality is

• A)logging,which pollutes rivers.
• B)locating beehives next to an orange orchard.
• C)smoking,which harms the health of a bystander.
• D)a flu vaccination.
• E)a sales tax.

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Definitions:

Inconsistent

Lacking compatibility or uniformity, or displaying variance and contradiction within a stated set of facts or values.

Promising

Showing signs of future success or positive outcomes; indicative of potential or likelihood to achieve something desirable.

Satisficer

An individual who makes decisions that are good enough under the circumstances, rather than striving for the optimal solution.

Mainstream Economic Models

Widely accepted theoretical frameworks used to analyze and predict economic phenomena, typically based on assumptions of rational behavior and market equilibrium.