Economics 9708 · AS & A Level · 7.4

7.4 — practice question

Can you give one example of a negative externality?

  • ALower profit due to increased competition from new firms entering the market.
  • BReduced government funding for a museum.
  • CThe increase in noise levels from aircraft due to the expansion of a large city airport.
  • DThe increase in production costs due to an increase in the cost of importing raw materials.

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