Question

Driving your car in a large city during rush hour causes externalities because a) gasoline is scarce, and you must pay for it b) gasoline is a public good. c) it adds to road congestion and pollution. d) your actions will benefit others, but you will be unable to charge them for the service.
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Answer #1

Answer : C) it adds to road congestion and pollution

Explanation

Driving your car during rush hours will increase road congestion because more other people use roadways at the same time. Due to road congestion , travel time will increase to reach the destination. The speed of driving will be slow due to heavy traffic.It will create negative externalities in terms of pollution.

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