Question

QUESTION 6 Durian is a fruit that is particularly popular in Singapore and Malaysia. Durian has a very strong smell, which many people dislike. As a result, the Singapore Mass Transit Authority bans people from carrying durians on Singapore's trains. 1. Transporting durians on the train has economic implications for passengers 2. If the Singaporean Mass Transit Authority did not intervene then it is likely durians would continue to be transported on its trains. 3. The smell of durian is an example of a negative externality. Which of the above statements are true: Only 1 is true. Only 2 is true. Both 1 and 2 are true. Both 2 and 3 are true. All three are true.

Answer 1

Question 6

It has been stated that Durian creates strong smell which is not liked by many people.

This means Durian create unpleasant environment for many people.

Unpleasant environment created by Durian is negative externality being created by the Durian.

Negative externality creates economic implications.

If Singapore Mass Transit Authority did not intervene then people will carry Durians on the train.

So, all three statements are true.

Hence, the correct answer is the option (e) [All three are true].