Multiple Choice
A negative externality arises when a person engages in an activity that has
A) an adverse effect on a bystander who is not compensated by the person who causes the effect.
B) an adverse effect on a bystander who is compensated by the person who causes the effect.
C) a beneficial effect on a bystander who pays the person who causes the effect.
D) a beneficial effect on a bystander who does not pay the person who causes the effect.
Correct Answer:
Verified
Correct Answer:
Verified
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