Which of the following is an example of a negative externality?
A. A Japanese company begins to produce cars and earns large profits.
B. An employee of a chemical company spills acid on his arm, causing severe damage.
C. John plants fruit trees in his front yard, which attracts bees, which sting neighbor Mary.
D. Sally buys coffee at McDonald's, spills some on her, and burns her arm.
Answer: C
You might also like to view...
Which of the following describes the final lag that impacts expansionary fiscal policy?
A. It takes time for policy makers to agree on a solution to the problem. B. It takes time for policymakers to recognize that there is a problem. C. It takes time for government to spend large amounts of money. D. It takes time for government spending to ripple through the economy.
A government is running a budget deficit if:
A. government revenue exceeds government spending. B. imports exceed exports. C. exports exceed imports. D. government revenue is less than government spending.