Which of the Following Statements About Externality Is INCORRECT

question 52

Multiple Choice

Which of the following statements about externality is INCORRECT?

• A)Pollution of a chemical plant will create negative externalities to the residents living in the neighborhood.
• B)Trees planted in the backyard of a house could create positive externalities to the pedestrians passing under.
• C)Extra output sold by a firm that lowers the market price creates negative externalities to its rivals.
• D)A single action may confer positive externalities on some people,but negative externalities on others.