Suppose that when farmers grow tomatoes, they use pesticides that leak into the ground water and cause people living near tomato farms to get sick. This is an example of a: Select one: a. negative production externality. b. positive consumption externality. c. positive production externality. d. negative consumption externality.
Suppose that when farmers grow tomatoes, they use pesticides that leak into the ground water and cause people living near tomato farms to get sick. This is an example of a: Select one: a. negative production externality. b. positive consumption externality. c. positive production externality. d. negative consumption externality.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Suppose that when farmers grow tomatoes, they use pesticides that leak into the ground water and cause people living near tomato farms to get sick. This is an example of a:
Select one:
a.
negative production externality.
b.
positive consumption externality.
c.
positive production externality.
d.
negative consumption externality.
Expert Solution
Step 1
Externality when welfare of someone who is not directly involved in the economic activity is gets affected by the activity of another perosn.
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