Suppose your neighbor enjoys letting the grass in his yard grow wild and free,a practice with which you disagree.This is an example of a:
A) negative production externality.
B) positive production externality.
C) positive consumption externality.
D) negative consumption externality.

Question

Quizplus · Accepted Answer

A negative consumption externality occurs when an individual's consumption of a good or service has a negative effect on others who did not choose to incur that cost. In this case, the neighbor's decision to let their grass grow wild and free may negatively impact the aesthetic value of the neighborhood for others who did not choose to live next to an unkempt yard.

Suppose Your Neighbor Enjoys Letting the Grass in His Yard