Bobby's neighbor is growing a tree that is blocking Bobby's ocean view. Bobby is considering taking his neighbor to court. This is most likely an example of a:
A) considerate neighbor.
B) public good.
C) free rider.
D) positive externality.
E) negative externality.

Question

Quizplus · Accepted Answer

Bobby's neighbor's tree is causing a negative externality by blocking Bobby's ocean view. This means that Bobby is experiencing a negative effect from his neighbor's actions without compensation.

Bobby's Neighbor Is Growing a Tree That Is Blocking Bobby's