Subject - Economics:

Microeconomics

MCQ - 103-4113

Question:

Which of the following is the best example of a negative externality and the appropriate plan for eliminating it?

Air pollution from a factory blows downwind and harms children in a small community. Tax the citizens of the community.
Your neighbor plants a fragrant blooming cherry tree in her front yard. Give a tree subsidy to your neighbor.
The waste from a hog farm pollutes a neighbor’s drinking water. Give a subsidy to the hog farmer.
Your neighbor plants a fragrant blooming cherry tree in her front yard. Give a tree subsidy to your neighbor.
Air pollution from a power plant is blowing downwind and harming the trees in your community. Tax the production of electricity.

Correct Answer: E

Explanation:

The appropriate fix to a negative externality is to tax either the producers or the consumers of electricity. The health problems of the smoker are not a negative externality, as the smoker is not a third party. The nonsmoking spouse of the smoker whose health is impaired would be a negative externality.

Previous Question

Next Question

Back to Section

Record Performance

269 MCQ for effective preparation of the test of Microeconomics of Economics section.

Read the MCQ statement: Which of the following is the best example of a negative externality and the appropriate plan for eliminating it? , keenly and apply the method you have learn through the video lessons for Microeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 103-4113.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

Share This Page

Full Films

TV Serials

Short Films

Upcoming Films