Question

What is Nick causing? 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

Answer:

It is an example of negative externality.

Explanation:

Negative externality occurs when the actions of one economic agent interfere with the actions of third parties, that is, the activities of other economic agents, and thus these actions will not be clearly reflected in prices. In this case, Nick's company production is causing a negative externality by polluting the lake; and with it is increasing its production without this cost of pollution being charged.

Answer 2

Nick is causing pollution specifically water pollution. Since he is contaminating the community lake. This kind of environmental deprivation happens when pollutants are straight or meanderingly discharged into water forms lacking passable treatment to eliminate harmful composites. This can damage the animals existing by the lake, and the people breathing the air.