Which of the following is an example of a negative externality?
A. Vaccination
B. Research and development
C. Education
D. Pollution from industrial activity
Answer: Option D
Solution (By JKSSB Mock Tests)
A negative externality imposes costs on third parties. Industrial pollution harms the environment and health of people who are not parties to the production decision.
Explanation:
The Marginal Rate of Substitution (MRS) is the rate at which a consumer is willing to give up one good for another while remaining on the same indifference curve.
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