QuestionAugust 4, 2025

Question 6/Multiple Choice Worth 4 points) (02.07 MC) Which of the following would most likely constitute a negative externality affecting free resources? Groundwater pollution Lower property taxes Higher property values New economic development

Question 6/Multiple Choice Worth 4 points) (02.07 MC) Which of the following would most likely constitute a negative externality affecting free resources? Groundwater pollution Lower property taxes Higher property values New economic development
Question 6/Multiple Choice Worth 4 points)
(02.07 MC)
Which of the following would most likely constitute a negative externality affecting free resources?
Groundwater pollution
Lower property taxes
Higher property values
New economic development

Solution
4.1(186 votes)

Answer

Groundwater pollution Explanation 1. Identify Negative Externality A negative externality is a cost suffered by a third party due to an economic transaction. 2. Analyze Options Groundwater pollution affects others negatively without compensation, fitting the definition of a negative externality.

Explanation

1. Identify Negative Externality<br /> A negative externality is a cost suffered by a third party due to an economic transaction.<br /><br />2. Analyze Options<br /> Groundwater pollution affects others negatively without compensation, fitting the definition of a negative externality.
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