Question

For the residents of the neighborhood where a new sports facility is located, the additional noise, congestion and crime that occurs in the area is called a:___________.

Answer 1

Answer:

B. Negative Externality

Explanation:

According to a different source, the options that come with this question are:

A. Positive externality

B. Negative Externality

C. Profit boost

D. Free-market equilibrium outcome

For the residents of this neighbourhood, the additional noise, congestion and crime that occurs in the area would be called negative externalities. Externalities are the costs or benefits that affect a third party that did not choose to incur in a particular cost or benefit. Externalities can be positive or negative. In this case, such externalities are negative because they are consequences of the facilities that the residents would most likely find undesirable.