Which of the Following Best Describes a Negative Externality

question 99

Multiple Choice

Which of the following best describes a negative externality?

• A) Your neighbor loves to bake bread and always brings you a loaf fresh and hot from the oven.
• B) Your neighbor has an ornamental pond that breeds mosquitoes.
• C) Your neighbor has invested in beautiful landscaping, increasing the value of all of the houses on the block.
• D) Your neighbor has a pool and has given you an open invitation to come over and swim.

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Definitions:

Collective Bargaining

The process of negotiating terms of employment between an employer and a group of employees (usually represented by a union) to reach agreements that regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights.

Wage Rates

The amount of money paid to an employee for a specified quantity of work, usually expressed per hour or per piece.

Bargaining Impasse

A deadlock in negotiations between two parties, typically involving labor unions and employers, where no agreement can be reached.

Lockout

An action taken by employers to prevent employees from entering the workplace, typically during labor disputes or negotiations.