Damian is texting while driving and ends up slamming into the back end of the car in front of him, which then strikes the car in front of it. By texting while driving, Damian has created a
A)negative externality.
B)positive externality.
C)nonexcludable public good.
D)marginal social benefit.

Question

Quizplus · Accepted Answer

Damian's action of texting while driving and causing an accident is a negative externality because it imposes a cost on others (the drivers of the cars he hit) that is not reflected in the price of the activity (texting while driving).

Damian Is Texting While Driving and Ends Up Slamming into the Back