Which Example Illustrates a Negative Externality

question 112

Multiple Choice

Which example illustrates a negative externality?

• A)high prices for necessities such as drinking water in the aftermath of a natural disaster
• B)the risks to nonsmokers from second-hand smoke
• C)the increased risk of a traffic accident to an individual who uses a cell phone while driving
• D)unemployment in the steel industry caused by low prices of imported (external)steel

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Definitions:

Group Project

A collaborative effort where individuals work together towards a common goal or to complete a task.

Communicating

The process of exchanging information or ideas through verbal, written, or non-verbal means to achieve understanding or share meanings.

Information Power

A form of power based on controlling access to information that is needed by others.

Position Power

The authority and influence a person possesses within an organizational hierarchy, often determined by job role or title.