When a person uses antibiotics, it increases the likelihood of drug resistant bacteria. Therefore, the use of antibiotics creates a(n):
A) positive externality.
B) negative externality.
C) efficient equilibrium.
D) excess supply.

Question

Quizplus · Accepted Answer

The use of antibiotics by one person can lead to the development of drug-resistant bacteria, which can affect others in the community negatively. This is a classic example of a negative externality, where the actions of an individual have harmful effects on others that are not reflected in the cost of the action.

When a Person Uses Antibiotics, It Increases the Likelihood of Drug