Multiple Choice
Which of the following best illustrates an externality?
A) A worker agrees to work in a dangerous job because it is the best job the worker can get.
B) A job is so dangerous that the employer cannot attract workers, resulting in a good not being produced despite the fact that it is valued by consumers.
C) A local government imposes a payroll tax of $5 per hour on employers causing some jobs, that would have existed in the absence of the tax, to be lost.
D) An employer and worker agree to produce a good with a production method that emits pollution on the nearby community.
Correct Answer:
Verified
Correct Answer:
Verified
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