Which of the following is NOT an activity that generates an externality?
A) Bob's Service Station dumps used oil in the river.
B) Bob renovates a run-down house in the neighborhood.
C) Bob occasionally drives while drunk.
D) Bob's Service Station donates a car to charity.

Question

Quizplus · Accepted Answer

Donating a car to charity does not generate an externality as it does not have an unintended impact on third parties.

Which of the Following Is NOT an Activity That Generates