Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A benefit received by others when a good is consumed
B
A cost incurred by others when a good is consumed
C
An increase in government revenue from taxes on goods
D
A decrease in demand for a good due to price increase
Understanding the Answer
Let's break down why this is correct
Answer
A negative externality in consumption happens when a person’s choice to consume a product affects others negatively, even if those others are not directly involved in the transaction. For example, think about someone who smokes cigarettes in a public place. The smoker enjoys their cigarette, but the smoke can bother and harm people nearby who are not smoking. This means the negative effects of smoking, like secondhand smoke, are felt by others, creating a problem that goes beyond just the smoker. In this way, the actions of one person can lead to unintended harm to the community around them.
Detailed Explanation
A negative externality happens when someone consumes a good and it causes problems for others. Other options are incorrect because This option suggests that others gain benefits when a good is consumed; This choice talks about government making money from taxes.
Key Concepts
consumption
Topic
Negative Externalities in Consumption
Difficulty
easy level question
Cognitive Level
understand
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