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Which Statement Best Exemplifies a Negative Externality

Question 147

Multiple Choice

Which statement best exemplifies a negative externality?


A) high prices for necessities such as clean water and safe shelter in the aftermath of a natural disaster
B) the risks to nonsmokers of second-hand smoke
C) the increased risk of a traffic accident to an individual who texts while driving
D) unemployment in the aluminum industry caused by low prices of imported (external) aluminum

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