The following scenarios are examples of externalities. Which is an example of a negative externality? Group of answer choices The local library decides to expand and in addition to the building structure creates a plaza with benches and three different types of fountains. A town adds recycling options for residents to be collected the same day as the trash. Electronic billboards were added in town advertising businesses. The digital advertisements are very, very bright and at night they shine over the city disturbing people’s sleep.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter8: Market Failure
Section: Chapter Questions
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The following scenarios are examples of externalities. Which is an example of a negative externality?
Group of answer choices
The local library decides to expand and in addition to the building structure creates a plaza with benches and three different types of fountains.
A town adds recycling options for residents to be collected the same day as the trash.
Electronic billboards were added in town advertising businesses. The digital advertisements are very, very bright and at night they shine over the city disturbing people’s sleep. 
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