Asked by Christine Marie on Apr 28, 2024
Verified
Which activity generates a negative externality?
A) You buy a new car,then discover it needs a new transmission.
B) Your next-door neighbor mows the lawn at 6 A.M.
C) The only two coffee shops in town conspire to raise prices.
D) After Jane buys health insurance,she begins racing motorcycles on the weekends.
Negative Externality
A cost that affects a party who did not choose to incur that cost, often seen in environmental pollution where the public bears the cost not reflected in the market price.
Lawn Mowing
Lawn mowing refers to the act of cutting or trimming the grass in a lawn to maintain its appearance and health, often performed as a routine landscaping activity.
- Gain an understanding of the idea of negative externalities and their effects on community welfare.
Verified Answer
ZK
Zybrea KnightMay 02, 2024
Final Answer :
B
Explanation :
The action of mowing the lawn at 6 A.M. generates a negative externality for the neighbor as it can disturb their sleep and cause a nuisance.
Learning Objectives
- Gain an understanding of the idea of negative externalities and their effects on community welfare.