📚 Learning Guide
Negative Externalities in Consumption
easy

Which of the following is an example of a negative externality in consumption?

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Learning Path

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Choose the Best Answer

A

A person smoking in a public place affecting non-smokers' health

B

A restaurant offering discounts to attract more customers

C

A factory reducing its production costs by switching to cheaper materials

D

A student studying late at night disturbing their roommate

Understanding the Answer

Let's break down why this is correct

Answer

A negative externality in consumption happens when someone’s choice to use a product affects others in a harmful way. For example, if a person smokes cigarettes in a public place, the smoke can bother other people nearby, making them uncomfortable or even harming their health. This means that while the smoker enjoys their cigarette, others are negatively impacted without any compensation or choice in the matter. So, the smoker's enjoyment creates an unwanted effect on others, illustrating how individual consumption can have broader consequences. Understanding this helps us see the importance of considering how our actions affect those around us.

Detailed Explanation

When someone smokes in public, it can harm the health of people nearby. Other options are incorrect because Offering discounts is a way to attract customers; Switching to cheaper materials may save money for a factory, but it doesn't directly harm others.

Key Concepts

negative externalities
Topic

Negative Externalities in Consumption

Difficulty

easy level question

Cognitive Level

understand

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