Which of the Following Is an Example of a Negative

question 87

Multiple Choice

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

• A) The discovery of one firm is freely copied by other firms.
• B) A firm dumps its industrial wastes into a nearby river.
• C) The government subsidizes research and development expenditures.
• D) A consumer buys more units of a product than she can consume.

---

Definitions:

Macroeconomist

An economist who specializes in understanding the large-scale or general economic factors that affect economies as a whole.

Production Possibilities Frontier

A visual that outlines every conceivable highest production level for a duo of items, taking into account inputs like resources and other contributing elements.

Government Regulations

Rules or laws established by governments to control and guide the operations of businesses and individuals with the aim of protecting public interest.

Macroeconomics

The branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, including issues like economic growth, inflation, and unemployment.