Which of the Following Is an Example of a Negative

question 176

Multiple Choice

Which of the following is an example of a negative externality?

• A) There is an increase in injuries to pedestrians caused by accidents resulting from electronic billboards distracting drivers.
• B) The opening of a new shopping mall increases the business of nearby restaurants.
• C) A consumer pays a higher price than another consumer does for the same product.
• D) Consumers pay a sales tax in addition to the price of a product.

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Definitions:

Intellectual Work

Work that involves mental activity and creativity, often producing new ideas, literary or artistic works, or problem solving.

Trade Secret

Intellectual work, such as a business plan, that is a company secret and is not based on public information.

Copyright

A legal right granted to the creator of original works, giving them exclusive rights to use, distribute, and modify their work.

Information Extortion

The act of coercing individuals or organizations into paying money in exchange for not divulging confidential information.