Excessive air-traffic noise in the neighborhoods surrounding an airport's flight path is an example of A) a negative externality

Marketing Dec 25, 2020

Excessive air-traffic noise in the neighborhoods surrounding an airport's flight path is an example of

A) a negative externality.

B) a public good.

C) a black market.

D) a shortage.

Expert Solution

The answer is A).

Externality is the impact a given economic activity has on the rest of the society that is uncompensated for. In this question, the excessive air-traffic noise in the neighborhood surrounding an airports's flight path is an externality because the people living in the neighborhood do not receive compensation for the noise. Hence, the noise is a type of externality.

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