When do negative externalities occur
A)when one person's actions cause another person to lose money in a stock market transaction
B)when one person's actions cause his or her employer to lose business
C)when one person's actions reveal his or her preference for foreign-produced goods
D)when one person's actions adversely affect the well-being of a bystander

Question

Quizplus · Accepted Answer

Negative externalities occur when one person's actions adversely affect the well-being of a bystander. This means that the actions of one person have negative consequences for someone else who didn't choose to be involved or affected. For example, pollution from a factory affects the health and well-being of nearby residents, who didn't choose to be exposed to that pollution.

When Do Negative Externalities Occur