Which of the following is an example of an externality?
A)Annie purchases a new dress.
B)Antonio's dog barks loudly during the night,waking his neighbors.
C)Harold sells a book to Cathy,who reads the book and then gives it to James as a gift.
D)Gloria watches a scary movie.

Question

Quizplus · Accepted Answer

Antonio's dog barking loudly at night affects his neighbors and disrupts their sleep, which is an example of a negative externality. The cost of the disturbance is placed on the neighbors without their consent, and they are not compensated for it.

Which of the Following Is an Example of an Externality