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

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