Loud music from a neighbor's party is:
A) a negative externality whether or not you like it.
B) a positive externality whether or not you like it.
C) a positive externality if you like the music, and a negative externality if you don't.
D) a negative externality if you like the music, and a positive externality if you don't.
E) not an externality.

Question

Quizplus · Accepted Answer

Externalities are effects on third parties; if you enjoy the music, it's a positive externality, and if you don't, it's a negative externality.

Loud Music from a Neighbor's Party Is