Multiple Choice
Which activity generates a negative externality?
A) You buy a new Lexus and then discover it needs a new alternator.
B) Your neighbor starts his noisy construction project at 6:00 a.m. on weekends.
C) The only two hardware stores in town agree to form a cartel and fix prices.
D) After Judith buys life insurance, she begins skydiving classes on the weekends.
Correct Answer:
Verified
Correct Answer:
Verified
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