Which of the following is an example of a negative externality?
A) Lung cancer due to passive smoking
B) Health problems due to consumption of excessive alcohol
C) Increased obesity rates due to consumption of junk food
D) Lower infant mortality due to the discovery of new vaccines

Question

Quizplus · Accepted Answer

Negative externalality refers to a situation where the actions of an individual or firm result in harmful effects on others who are not involved in the decision-making process. Passive smoking is a classic example of a negative externality because non-smokers suffer health consequences due to the actions of smokers, without having chosen to be exposed to the smoke.

Which of the Following Is an Example of a Negative