A noisy party that keeps neighbors awake is an example of a
A) negative production externality.
B) positive production externality.
C) negative consumption externality.
D) positive consumption externality.
E) Both answers B and C are correct.

Question

Quizplus · Accepted Answer

A noisy party that disturbs neighbors is an example of a negative consumption externality because it is a negative effect experienced by others who are not part of the consumption activity (in this case, the party).

A Noisy Party That Keeps Neighbors Awake Is an Example