Which of the following is an example of a negative externality?

A) an increase in the value of land you own when a nearby development is completed
B) the costs paid by a company to build an automated factory
C) falling property values in a neighborhood where a disreputable nightclub is operating
D) the higher price you pay when you buy a heavily advertised product

Negative Externality

A situation where a third party suffers costs or harm as a result of an economic transaction between other parties, without compensation, such as pollution from a factory affecting nearby residents.

Property Values

The monetary worth assigned to real estate, determined by various factors including location, size, and condition of the property.