Question

Nick has set up his steel factory near a community lake. The waste from his factory is directly thrown in the lake and is causing the death of the fishes in the lake. This is an example of a negative _________

Answer 1

This is an example of negative environmental impact of human activities. Nick's factory should be closed immediately. He is destroying a very important ecosystem for the community. 

Answer 2

Answer:

The correct answer is ''negative externality''.

Explanation:

In the field of economics, externalities represents the cost or benefit to a party that did not want to participate in the process of obtaining that cost or nither that benefit. These externalities could be of two types, one is positive and the other is negative. The first one brings to the external party, a benefit. The second one brings to the external party, a cost.

Negatives externalities are the perfect example of what happen when an external source causes damage to something that most of the population uses. Therefore that the example of the factory causing death to the fishes in the lake is a negative externality because the people around the lake do not have participation in the destruction of the environment. Therefore is a cost that they do not want to be part of.