Question

Pollution created by factories/vehicles is an example of:

Options

• Positive externalities.

• Negative externalities.

• Either (A) or (B)

• Neither (A) of (B)

Answer 1

Negative externalities.

Explanation:

Negative externalities are the costs borne by an unrelated third party as a result of an economic transaction. Pollution from companies and automobiles has a harmful impact on society.