Answer: Option (a) is correct.
Step-by-step explanation:
Air pollution is created from burning of fossil fuel which causes damages to the crops and health of the people. This is a negative externality that is generated by burning fossil fuels.
Externality is a side effect of an activity that is operated by a particular industry or people which affects the other parties and this cost is not included in the cost of goods and services.
There are two types of externalities ; Positive and Negative externality.
Negative externality refers to the externality that affects the other parties in a negative way. For example, smoking.
Positive externality refers to the externality that affects the other parties in a positive way. For example, Education.