Negative externalities occur when one person's actions:
A)cause another person to lose money in a stock-market transaction.
B)cause his or her employer to lose business.
C)adversely affect the wellbeing of a bystander (or bystanders) who is (are) not party to a market exchange.
D)reveal his or her preference for foreign produced goods.

Question

Quizplus · Accepted Answer

Negative externalities refer to the negative impact of one person's actions on others who are not involved in the market exchange. This can manifest in the form of decreased wellbeing or harm to bystanders. Choices A, B, and D are not accurate descriptions of negative externalities.

Negative Externalities Occur When One Person's Actions