Which of the Following Is Not an Example of an Externality

question 110

Multiple Choice

Which of the following is not an example of an externality?

• A) Carbon dioxide from energy generation that adds to the worldwide long-term greenhouse effect.
• B) Heat from a factory that makes the neighboring tomato patches more productive.
• C) A defective part that causes an automobile to break down three months after purchase.
• D) Acidic by-products of fossil fuel combustion that produce acid rain.

---

Definitions:

Friendly Bank

Informal term for a bank with which an individual or business has a good relationship and favorable terms.

Liability

A legal responsibility or obligation, often involving compensation for harm or damage caused.

Illegal Drugs

Substances whose production, sale, or possession are prohibited by law due to their potential for abuse or harm.