If your neighbor burns auto tires in the yard and you can smell them and cannot see sunlight because of the black smoke, you are experiencing
A) a private benefit.
B) a private cost.
C) a positive externality.
D) a negative externality.

Question

Quizplus · Accepted Answer

Burning auto tires and experiencing the resultant smoke and smell without consent is a negative externality, as it imposes an unwanted cost on you without compensation.

If Your Neighbor Burns Auto Tires in the Yard and You