Economics · Environmental Economics
Which of the following provides a classic example of a negative environmental externality?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1An organic farm generating high profits through open market sales
- 2A factory polluting a local river, causing health costs for nearby residents that are not included in the factory's production costs✓
- 3A government providing subsidies to promote solar panel installation
- 4A company investing in its own employee safety programs
Correct answer
A factory polluting a local river, causing health costs for nearby residents that are not included in the factory's production costs
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