An Example of a Negative Externality Is The

question 61

Multiple Choice

An example of a negative externality is the:

• A) decrease in your real income that results when photographic equipment you purchase increases in price because of increased demand by others for these items.
• B) cost you bear when your neighbor has a noisy party and does not compensate you for your discomfort.
• C) benefit you receive without paying when your neighbor installs a smoke detector.
• D) decrease in income to farmers that results from a drought.

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Definitions:

Post-it Note Pads

Small pieces of paper with a re-adherable strip of adhesive on the back, intended for temporarily attaching notes to documents and other surfaces.

3M Corporation

A multinational conglomerate corporation known for products like Post-it Notes, Scotch tape, and a wide range of industrial and consumer goods.

Venture Capital

Financing that investors provide to startup companies and small businesses believed to have long-term growth potential.

Start-up Firms

Newly established businesses, often in the early stage of development and research of their products or services.