Wei,an exchange student from China,was called upon to give an example of an externality that she experienced in her homeland.Which of the following would she cite?

Question

Quizplus · Accepted Answer

Weather bureau warnings against exercising outdoors can be considered an externality as it affects the health and well-being of individuals, regardless of their personal actions. It is a negative externality as it is a cost imposed on people who want to exercise outdoors, but they cannot do so because of pollution and other environmental factors. The weather warning is a consequence of the collective behavior of society such as industrial pollution and automobile emissions.

Wei,an Exchange Student from China,was Called Upon to Give an Example