Which of the following is considered a negative externality of production?(1 point)

Question

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 option that is considered a negative externality of production is:

pollution caused by increased economic activity

Negative externalities occur when the production or consumption of a good or service imposes costs on third parties who are not directly involved in the transaction. Pollution is a classic example of such a cost.