Which of the following is an externality associated with owning a dog?
A) the noise your neighbours hear when your dog barks
B) protection from burglars
C) time spent walking the dog
D) dog hair in the carpet

Question

Quizplus · Accepted Answer

The noise your dog makes can be heard by your neighbours, affecting their quality of life, which is an example of a negative externality associated with owning a dog. Option B is not an externality, as it only benefits the dog owner. Option C is a cost borne by the dog owner, so it is not an externality. Option D is also a cost borne by the dog owner and does not affect others, so it is not an externality either.

Which of the Following Is an Externality Associated with Owning