Developed and Less Developed Nations Quick Check

Question

5 of 55 of 5 Items
Question
Which of the following is considered a negative externality of production?(1 point)
Responses

benefit to society when citizens are vaccinated against a deadly virus
benefit to society when citizens are vaccinated against a deadly virus

benefit to society when citizens are more trained and educated
benefit to society when citizens are more trained and educated

pollution caused by increased economic activity
pollution caused by increased economic activity

development of a vaccine by a pharmaceutical company

Answer 1

The correct answer is:

pollution caused by increased economic activity

This is considered a negative externality of production because it represents a cost imposed on society that is not reflected in the price of the goods produced.