SSC
GENERAL ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is a NEGATIVE externality?
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Polluition
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Coming to school sick
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Blasting loud music outside in the middle of the night
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All of the above
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Explanation:
Detailed explanation-1: -Pollution is a well-known negative externality.
Detailed explanation-2: -There are four main types of externalities: positive production, positive consumption, negative production, and negative consumption.
Detailed explanation-3: -A negative externality occurs when an economic transaction imposes a cost to a uninvolved third party. A negative externality occurs when the social cost is greater than the production cost or private cost. This means that there is a total negative effect imposed on society from economic activity.
There is 1 question to complete.