Question

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Question Help Which of the following is not a negative externality? OA. A college student volunteering at a youth center. O B. The opening of a chemical plant upstream from a riverside vacation resort. OC. Playing loud music at a frat party that keeps the neighbors awake. OD. None of the above Click to select your answer. Save for Later

Answer 1

A negative externality is present when action taken by an individual reduction the welfare or utility of other persons.

Playing loud music may create negative externality to neighbor because they nay get negative utility from it.

Opening a chemical plant upstream may creates negative externality for riverside resort beacuse it may decrese the attractive ness of resort and there by earning of riverside resort owner. So it is also a negative externality.

A college student volunteering at youth center is not the case of negative externality because it could not reduce the welfare of someone.

So answer is (A)