Which of the following would not be considered a negative externality?
A)Smelter, Inc. creates steel and pollution.
B)Your friend buys a new puppy that barks every night.
C)You have an adverse reaction to a medication your doctor prescribed for you.
D)Your neighbor plays loud music that you dislike through stereo speakers set up on his deck.

Question

Quizplus · Accepted Answer

An adverse reaction to medication is a private cost borne by the individual taking the medication, not an external cost imposed on others, which is what defines a negative externality.

Which of the Following Would Not Be Considered a Negative