An Example of a Negative Externality Created in the Market

question 39

Multiple Choice

An example of a negative externality created in the market system would be

• A) poverty.
• B) unemployment.
• C) a change in one consumer's tastes and preferences.
• D) water pollution.

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Definitions:

Urban Underclass

A segment of the population living in urban areas that is characterized by high levels of poverty, unemployment, and social marginalization.

Working Poor

Individuals who have employment but whose earnings are not sufficient to meet the minimum living standards.

Economic Support

Financial or material assistance provided to individuals, families, or communities to ensure their basic needs are met or to support economic development.

Middle Class

Describes a socio-economic group that falls between the working class and upper class, often characterized by moderate incomes, education levels, and occupations.