Which of the following activities create a negative externality?
A)cleaning up the sidewalk on your block
B)graduating from college
C)repainting the house you live in to improve its appearance
D)keeping a junked car parked on your front lawn

Question

Quizplus · Accepted Answer

Keeping a junked car parked on your front lawn creates a negative externality as it affects the aesthetics of the neighborhood and can decrease property values for surrounding homes. The other options either have a positive externality (cleaning up the sidewalk and repainting the house improve the appearance of the neighborhood) or do not have an externality (graduating from college does not affect others in the same way).

Which of the Following Activities Create a Negative Externality