Asked by Delaney Bacher on Jul 25, 2024
Verified
When you throw trash out your car window you are creating:
A) a positive externality.
B) a negative externality.
C) a private good.
D) a public good.
E) both a private and a public good.
Negative Externality
A cost that affects a party who did not choose to incur that cost, often resulting from industrial activity, where the negative effects are felt by others, such as pollution.
Public Good
A product that is non-excludable and non-rivalrous, meaning it can be used by many simultaneously without diminishing the product's availability to others.
Private Good
A good, such as pizza, that is both rival in consumption and exclusive.
- Describe the notion of externalities and their effects on societal well-being.
Verified Answer
AP
Andrés PalauJul 26, 2024
Final Answer :
B
Explanation :
When you throw trash out your car window, you are creating a negative externality because it has a harmful effect on the environment and society as a whole. It is not a private good, which is something that can be owned and consumed individually, nor is it a public good, which benefits everyone and cannot be withheld from anyone.
Learning Objectives
- Describe the notion of externalities and their effects on societal well-being.