All of the following are examples of spillover effects EXCEPT:
A) second-hand smoke.
B) pollution.
C) price gouging.
D) road congestion

Question

Quizplus · Accepted Answer

Spillover effects, also known as externalities, are costs or benefits that affect parties who did not choose to incur that cost or benefit. Second-hand smoke, pollution, and road congestion are all examples of negative externalities where the actions of some individuals negatively impact others who are not directly involved. Price gouging, however, is not an example of a spillover effect; it refers to a situation where sellers increase the prices of goods, services, or commodities to a level much higher than is considered reasonable or fair, often in response to a demand spike, and does not inherently involve a cost or benefit to third parties not involved in the transaction.

All of the Following Are Examples of Spillover Effects EXCEPT