Someone else playing music loudly on the radio in a dormitory the night before your economics exam is an example of which of the following?
A) negative production externality
B) positive production externality
C) positive consumption externality
D) negative consumption externality

Question

Quizplus · Accepted Answer

The loud music is creating a negative consumption externality, as it is impacting someone else negatively (you) who has not voluntarily chosen to listen to the music.

Someone Else Playing Music Loudly on the Radio in a Dormitory