Economics for Today 9th Edition by Irvin Tucker

Exercise 32

You are considering whether to buy one house for $100,000 or another identical house located near high-voltage electric power lines for $90,000. Assume that it has been established that living near high-voltage lines increases the risk of cancer due to electromagnetic fields (EMFs). If you choose the $90,000 house, is the radiation from EMFs an externality? Explain.