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Which Activity Generates a Negative Externality

Question 34

Multiple Choice

Which activity generates a negative externality?


A) You buy a new car,then discover it needs a new transmission.
B) Your next-door neighbor mows the lawn at 6 A.M.
C) The only two coffee shops in town conspire to raise prices.
D) After Jane buys health insurance,she begins racing motorcycles on the weekends.

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