In 2008, a man was charged with one count of illegally stocking wild animals, a civil offense. State investigators had accused him of bringing 31 wild hogs from Texas to Wisconsin to hunt on his private land in 2002, spawning a feral hog population that has caused thousands of dollars in crop damage to hundreds of farms in the region. What is the externality in this example?
A) Bringing 31 wild hogs from Texas to Wisconsin to hunt on his private land
B) Spawning a feral hog population
C) Illegally stocking wild animals
D) Crop damage

Question

Quizplus · Accepted Answer

The externality in this example is the crop damage caused by the feral hog population, which is an unintended consequence affecting third parties (farmers) not involved in the initial action of bringing the hogs.

In 2008, a Man Was Charged with One Count of Illegally