Which of the following is an example of a negative externality? MCQ with Answer and Explanation

Which of the following is an example of a negative externality?
A. Research and development
B. Pollution from industrial activity
C. Education
D. Vaccination
Answer: Option B
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.

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Practice More Economy Set 1 Questions

Question #1
The 'Goods and Services Tax' on casinos is:
A. 18%
B. 5%
C. 12%
D. 28%

Correct Answer: Option D


Explanation:
Casino services attract 28% GST.

This question belongs to: Economy GK Economy Set 1
Question #2
The concept of 'Sustainable Finance' encompasses:
A. Financial activities that take environmental, social and governance (ESG) factors into account in investment decisions
B. Only microfinance in rural areas
C. Only maximising short-term financial returns without regard to externalities
D. Only government budgetary finance

Correct Answer: Option A


Explanation:
Sustainable finance refers to the process of taking environmental, social and governance considerations into account when making investment decisions, with the aim of supporting long-term sustainable economic activities.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' rate on postal services is:
A. 5%
B. 0%
C. 12%
D. 18%

Correct Answer: Option B


Explanation:
Postal services by the Department of Posts are exempt from GST.

This question belongs to: Economy GK Economy Set 1