Asked by
Virginia Bliss
on Oct 26, 2024
Verified
Which statement BEST describes a negative externality?
A) Your neighbor loves to bake bread and always brings you a loaf fresh and hot from the oven.
B) Your neighbor has an ornamental pond that breeds mosquitoes.
C) Your neighbor has invested in beautiful landscaping,increasing the value of all of the houses on the block.
D) Your neighbor has a pool and has given you an open invitation to come over and swim.
Negative Externality
An economic activity that imposes a negative effect on an unrelated third party, often leading to market failure if not addressed, like pollution.
Mosquitoes
Mosquitoes are flying insects known for their role in spreading diseases to humans and other animals through their bites.
Ornamental Pond
a water feature designed for aesthetic purposes, often found in gardens or landscapes.
- Differentiate between negative and positive externalities.
- Understand the concept of negative externalities and their impact on society.
Verified Answer
YS
Learning Objectives
- Differentiate between negative and positive externalities.
- Understand the concept of negative externalities and their impact on society.