Multiple Choice
Which of the following is not an example of an externality?
A) Drunk drivers raise everyone's auto insurance premiums.
B) The price of lumber increases as lumberjacks' wages increase.
C) The neighbor's beautiful front yard increases your home value.
D) Someone drives a car that emits thick black smoke.
E) People who live near a bakery enjoy the smell of baked bread.
Correct Answer:
Verified
Correct Answer:
Verified
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