An example that does NOT illustrate an external cost is:
A)the smoke nuisance of a factory.
B)zoning restrictions on your property.
C)land defilement from strip mining.
D)a spreading patch of weeds on your next-door neighbor's lawn.

Question

Quizplus · Accepted Answer

Zoning restrictions on your property do not involve any external costs as they are regulations imposed by the government that affect only the property owner and not the surrounding parties. The other options involve externalities as they cause negative impacts on others without compensation.

An Example That Does NOT Illustrate an External Cost Is