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If factory smoke affects the health of nearby residents, what type of externality is it?

Answer and explanation

Correct answer: Negative externality

Factory production may create private income and goods, but smoke imposes health risks and possible medical costs on nearby residents who did not choose the transaction. Because the outside effect is harmful rather than beneficial, it is a negative environmental externality. A positive externality would provide an unintended benefit, while the other options are not classifications of this impact.

Related tags

Negative ExternalityFactory PollutionGeography As An Integrating DisciplineGeography As An Integrating Discipline Spatial AttributesGeography As A DisciplineGeographyClass 11 Mcq

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