Which of the Following Is a Negative Externality

question 22

Multiple Choice

Which of the following is a negative externality?

• A) high prices for necessities such as drinking water in the aftermath of a natural disaster
• B) the risks to nonsmokers from second-hand smoke
• C) the increased risk of a traffic accident to an individual who uses a cell phone while driving
• D) unemployment in the steel industry caused by low prices of imported (external) steel

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Definitions:

Shirk

The act of avoiding or neglecting duties and responsibilities, often in the workplace.

Commission Rate

The percentage or fixed fee that agents, brokers, or service providers earn as a reward for their sales efforts or services rendered.

Sale Probability

The likelihood or chance that a product or service will be purchased within a given timeframe.

Shirk

The act of avoiding or neglecting one's duties or responsibilities.