Which Activity Generates a Negative Externality

question 25

Multiple Choice

Which activity generates a negative externality?

• A) You buy a new car,then discover it needs a new transmission.
• B) Your next-door neighbour mows the lawn at 6 A.M.
• C) The only two coffee shops in town conspire to raise prices.
• D) After Jane buys life insurance,she begins racing motorcycles on the weekends.

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Definitions:

Weight Thermostats

The concept suggesting that the body regulates its weight around a biologically predetermined point, akin to a thermostat regulates temperature.

Basal Metabolic Rate

The rate at which the body uses energy while at rest to maintain vital functions such as breathing and circulation.

Hunger

The physical sensation and psychological drive for food intake, resulting from the body's energy needs.

Settling Point

A theory related to body weight regulation, proposing that weight stabilizes around a natural "set point" determined by genetics and environment.