Which of the Following Is an Example of a Negative

question 104

Multiple Choice

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

• A) the benefit you receive when your neighbour installs a smoke detector
• B) the reduction in profits for your company that occurs when there is a decrease in consumer demand for the product you manufacture
• C) the change in the property values of your neighbours' homes when you paint your house and landscape your front yard
• D) the sleep you lose when your neighbour throws a loud party next door that keeps you awake

---

Definitions:

Scaling

The process of adjusting or changing the size, range, or proportions of data or an image to fit or correspond to a desired system or format.

Notation

A system of symbols or codes used in a specific context, such as programming or mathematical expressions, to represent information.

Future Profits

Expected earnings or gains from investments or business activities, projected into upcoming periods.

Stock Price

The cost of purchasing a share of a company's equity, representing ownership in the firm, and fluctuates based on supply and demand in the market.