Which of the following 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) falling property values in a neighborhood where a disreputable nightclub is operating
D) the higher price you pay when you buy a heavily advertised product

Question

Quizplus · Accepted Answer

Falling property values in a neighborhood where a disreputable nightclub is operating is an example of a negative externality because it is a cost imposed on the homeowners in the neighborhood due to the negative impact of the nightclub on the surrounding community.

Which of the Following Is an Example of a Negative