Which of the following would NOT likely be considered a negative externality
A)Smelter Ltd.creates steel and pollution in Anytown, Canada.
B)Your friend buys a new puppy that barks every night.
C)You have an adverse reaction to a medication your doctor prescribed for you.
D)Your neighbour purchases the most powerful speakers money can buy for his patio.

Question

Quizplus · Accepted Answer

A negative externality is a cost suffered by a third party due to an economic transaction. Options A, B, and D involve third parties being affected by actions they did not choose, such as pollution, noise from a puppy, and loud music. Option C is a personal adverse reaction to medication, which does not involve a third party.

Which of the Following Would NOT Likely Be Considered a Negative