An Example of an Activity That Creates a Negative Consumption

question 79

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)none of the above.

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Definitions:

Gas Utility

Companies that provide natural gas services to residential, commercial, and industrial customers.

Market Structure

The competitive environment characterizing a market, determined by the number of firms, product differentiation, and ease of entry and exit.

Agricultural Products

Goods derived from agriculture including crops, livestock, and products directly obtained from farming activities.

Wheat

Wheat is a cereal grain grown worldwide and is a staple food ingredient used for making bread, pasta, cake, and many other food products.