An example of a negative externality is
A)Pollution
B)An apple orchard increasing the number of trees next to a bee farm
C)The Clean Air Act
D)A consumer paying too much for an item

Question

Quizplus · Accepted Answer

Pollution is an example of a negative externality because it imposes costs on society that are not borne by the polluter. For example, a factory may release pollutants into the air or water, which can harm the health of nearby residents and damage ecosystems. These costs are not reflected in the price of the goods produced by the factory, so they are external to the market.

An Example of a Negative Externality Is