Which of the Following Is an Example of a Negative

question 176

Multiple Choice

Which of the following is an example of a negative externality?

• A) There is an increase in injuries to pedestrians caused by accidents resulting from electronic billboards distracting drivers.
• B) The opening of a new shopping mall increases the business of nearby restaurants.
• C) A consumer pays a higher price than another consumer does for the same product.
• D) Consumers pay a sales tax in addition to the price of a product.

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Definitions:

Extraction Costs

The expenses associated with the removal of natural resources from the earth, such as mining or drilling.

Price of Resource

The cost associated with securing a natural or economic resource for use in production or consumption.

Extraction Costs

Costs related to extracting natural resources from the ground, like mining or drilling activities.

Quantity Extracted

The amount of a resource or good that is removed from its natural setting or produced over a given period.