Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The concert venue is generating revenue for the local economy.
B
Consumers are enjoying the benefits of live music without bearing the full costs.
C
The concert venue is complying with all noise regulations.
D
The local government has increased funding for public events.
Understanding the Answer
Let's break down why this is correct
Answer
The primary underlying cause of the negative externality from increased noise pollution at a concert venue is that the venue's activities affect people who are not directly involved with it. When concerts happen, the loud music and noise can disturb nearby residents, making it hard for them to enjoy their homes or sleep. This situation shows how the concert venue's actions create a cost for the community, even though the venue itself benefits from hosting events. For example, if a family living near the venue cannot sleep because of the noise, they are experiencing a negative impact that they did not choose. Therefore, the concert venue's enjoyment comes at a cost to those living around it, illustrating how one group's activities can negatively affect another group.
Detailed Explanation
People enjoy the music, but they don't pay for the noise it causes. Other options are incorrect because Some might think that making money is the main issue; It may seem that following rules solves the problem.
Key Concepts
Negative externalities in consumption
Marginal social cost vs. marginal private benefit
Government intervention
Topic
Negative Externalities in Consumption
Difficulty
hard level question
Cognitive Level
understand
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