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An Example of a Negative Externality Is The

Question 27

Multiple Choice

An example of a negative externality is the:


A) decrease in your real income that results when photographic equipment you purchase increases in price because of increased demand by others for these items.
B) cost you bear when your neighbor has a noisy party and does not compensate you for your discomfort.
C) benefit you receive without paying when your neighbor installs a smoke detector.
D) decrease in income to farmers that results from a drought.

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