Multiple Choice
Which example illustrates a negative externality?
A) high prices for necessities such as drinking water in the aftermath of a natural disaster
B) the risks to nonsmokers from second-hand smoke
C) the increased risk of a traffic accident to an individual who uses a cell phone while driving
D) unemployment in the steel industry caused by low prices of imported (external) steel
Correct Answer:
Verified
Correct Answer:
Verified
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