Which of the following is not an example of an activity that generates an externality?
A)Bob's Service Station dumps used oil in the river.
B)Bob renovates a run-down house in the neighborhood.
C)Bob occasionally drives while drunk.
D)Bob's Service Station donates a car to charity.

Question

Quizplus · Accepted Answer

Donating a car to charity does not generate an externality as it does not have an unintended impact on third parties.

Which of the Following Is Not an Example of an Activity