Which of the following is a negative externality?
A) high prices for necessities such as drinking water in the aftermath of a natural disaster
B) the risks to nonsmokers from second-hand smoke
C) the increased risk of a traffic accident to an individual who uses a cell phone while driving
D) unemployment in the steel industry caused by low prices of imported (external) steel
Correct Answer:
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Q1: Damage to the environment occurs because:
A) most
Q2: Given the general agreement that pollution is
Q9: A negative externality:
A)is any cost above the
Q10: An industry with production that generates external
Q10: Which of the following is an activity
Q11: All of the following are examples of
Q12: If an activity generates external costs,the decision
Q14: If drivers decide to make phone calls
Q18: A coal-powered electrical generator that discharges smoke
Q20: The socially optimal amount of pollution occurs
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