Which of these consumption activities will most likely impose an external cost?
A)An executive plays a vigorous game of golf.
B)A student in a dorm plays her CDs at 120 decibels late at night.
C)A young mother exercises to an aerobics video.
D)A construction worker eats a sandwich during his lunch break.

Question

Quizplus · Accepted Answer

Playing music loudly late at night will likely impose a cost on neighbors who are disturbed by the noise, making it an example of an external cost. The other choices do not necessarily impose external costs.

Which of These Consumption Activities Will Most Likely Impose an External