Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose 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 occurs when the actions of one person negatively affect others who are not involved in the decision. For example, if someone smokes cigarettes in a public place, the smoke can harm the health of nearby non-smokers. This means that while the smoker enjoys their cigarette, others are forced to breathe in harmful substances, which can lead to health problems for them. The key idea is that the smoker does not pay for the health risks imposed on others, leading to a situation where the overall social cost is higher than the individual's benefit. This is why it is important to consider the wider effects of our choices on 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 to attract customers is a business strategy; A factory cutting costs by using cheaper materials is about saving money.
Key Concepts
negative externalities
Topic
Negative Externalities in Consumption
Difficulty
easy level question
Cognitive Level
understand
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