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.

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Definitions:

Margaret Floy Washburn

The first woman to earn a PhD in psychology and known for her work in animal behavior and motor theory development.

George Herbert Mead

George Herbert Mead was a sociologist known for his work on the development of the self and the theory of social behaviorism.

Grandiose Narcissism

Narcissism including high extraversion and dominance but low neuroticism.

Neuroticism

Attributes of an individual's nature, such as experiencing worry, apprehension, changes in mood, envy, annoyance, competitive jealousy, and loneliness.