Which of the following is an example of a negative externality?
A) A Japanese company begins to produce cars, which causes American workers to lose their jobs.
B) An employee of a chemical company spills acid on his arm, causing severe damage.
C) John plants fruit trees in his front yard, which attracts bees, which sting neighbor Mary.
D) Sally buys coffee at McDonald's, spills some on her, and burns her arm.

Question

Quizplus · Accepted Answer

John's decision to plant fruit trees has a negative impact on his neighbor Mary, who is stung by the bees attracted to the trees. This is an example of a negative externality, where one person's actions have a negative effect on someone else who is not involved in the decision. Choices A, B, and D all involve individuals directly affected by their own actions, rather than external consequences affecting others.

Which of the Following Is an Example of a Negative