Which of the following is the best example of a negative externality? Multiple Choice O A firm keeps its production costs down by dumping its waste in the nearby river, adversely affecting water quality for residents in the area. No one provides street lights in a town because, once the lights are in operation, people don't have to pay to use them. Government imposes taxes on the production of a socially desirable good. Street performers don't get full payment for the value of their output because people watch and enjoy the shows without paying the artist.

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
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Which of the following is the best example of a negative externality?
Multiple Choice
A firm keeps its production costs down by dumping its waste in the nearby river, adversely affecting water quality for residents in the area.
No one provides street lights in a town because, once the lights are in operation, people don't have to pay to use them.
Government imposes taxes on the production of a socially desirable good.
Street performers don't get full payment for the value of their output because people watch and enjoy the shows without paying the artist.
Transcribed Image Text:Which of the following is the best example of a negative externality? Multiple Choice A firm keeps its production costs down by dumping its waste in the nearby river, adversely affecting water quality for residents in the area. No one provides street lights in a town because, once the lights are in operation, people don't have to pay to use them. Government imposes taxes on the production of a socially desirable good. Street performers don't get full payment for the value of their output because people watch and enjoy the shows without paying the artist.
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