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Which of the following is NOT an example of a negative externality?
a. air pollution from a manufacturing plant.
b. disrupted sleep from a neighbor’s loud music.
c. an illness caused by secondhand cigarette smoke.
d. a decrease in your property value from neglecting your lawn and garden.

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Answer:

d. A decrease in your property value from neglecting your lawn and garden

Explanation:

A negative externality is a cost incurred or received by a third party who has no control over it.

In a, b and c the community, disrupted sleeper and secondhand smoker are the third party. In d you are not the third party. You neglect your lawn and garden and bear the cost of decreased property value.

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