Externalities are commonly generated from
A)purely competitive retail industries.
B)modern computer technologies.
C)ordinary consumption and production activities.
D)benefits from further pollution abatement, which are zero.

Question

Quizplus · Accepted Answer

Externalities, whether positive or negative, are often generated from everyday consumption and production activities such as driving a car, creating pollution, or producing goods that create noise pollution. They occur when the actions of one person or entity affect the well-being of others without any compensation or consideration, which is why they are considered market failures that require corrective government intervention. While externalities can also arise from other industries or technologies, such as computer software or renewable energy, they are not necessarily inherent to those sectors and do not represent the primary source of externalities in the economy.

Externalities Are Commonly Generated from