A negative externality arises when a person engages in an activity that has
a. an adverse effect on a bystander who is not compensated by the person who causes the effect.
b. an adverse effect on a bystander who is compensated by the person who causes the effect.
c. a beneficial effect on a bystander who pays the person who causes the effect.
d. a beneficial effect on a bystander who does not pay the person who causes the effect.
a
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The productivity of the employees of a bakery is reduced because of the excessive noise coming from a next door car repair shop. This is an example of
A) synergy. B) a positive externality. C) a negative externality. D) happy coexistence.
The scarcity of physical resources such as fuel means:
a. we should keep our homes cooler in the winter b. we should keep our homes warmer in the summer c. we should live close to our jobs to conserve fuel d. all of these are true.