Which is an example of a negative externality?
A) An increase in the value of land you own when a nearby development is completed
B) The costs paid by a company to build an automated factory
C) Decreased property values in a neighborhood where several houses are burglarized
D) The higher price you pay when you buy a heavily advertised product

Question

Quizplus · Accepted Answer

Decreased property values in a neighborhood due to burglaries is an example of a negative externality because the homeowners who did not experience the burglary still suffer the consequences of decreased property values.

Which Is an Example of a Negative Externality