Which of the Following "Externalities" Does Not Distort the Allocation

question 1

Multiple Choice

Which of the following "externalities" does not distort the allocation of resources?
I.An individual's unwillingness to cut his or her own lawn in an otherwise immaculately kept neighborhood.
II.Smoke produced by a new firm in an area which raises the costs of other firms.
III.A new firm's bidding up skilled wages in an area,thereby raising costs of other firms.
IV.An individual's unwillingness to obtain job training,thereby lowering the total GNP.
Possible choices:

• A)I,III,and IV.
• B)III and IV.
• C)III only.
• D)IV only.

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Definitions:

Sumner Redstone

A media magnate and billionaire known for his ownership and control of companies like Viacom and CBS Corporation, playing a significant role in the entertainment industry.

Viacom

A multinational media conglomerate known for owning various television networks, movie production and distribution labels, and related businesses.

Rupert Murdoch

An influential media magnate known for creating a global network of newspapers, television channels, and online media.

News Corporation

A large international media conglomerate founded by Rupert Murdoch, involved in the production and distribution of film, television, newspapers, and other media.