Which of the following activities can create an external cost?
A)Honking continuously while driving past a hospital.
B)Reducing the use of plastic carry bags while shopping.
C)Burying garbage under the soil and planting trees on it.
D)Using smog controls on private cars.

Question

Quizplus · Accepted Answer

Honking continuously while driving past a hospital can create noise pollution which is an external cost to the patients and staff at the hospital.

Answer: C
 Burying garbage under the soil and planting trees on it can create environmental pollution and health hazards for people living in the vicinity. This is an external cost.

Answer: D
 Using smog controls on private cars can create a benefit to the environment and public health by reducing pollution levels. This is not an example of an external cost.

Therefore, the best choices are A and C.

Which of the Following Activities Can Create an External Cost