Final Answer:
Consuming a pair of Gap jeans is not an example of an externality.
The correct option is C. consuming a pair of Gap jeans.
Step-by-step explanation:
An externality refers to a consequence or impact that arises from an economic activity and affects a third party who did not choose to incur it. In other words, externalities are costs or benefits that are not reflected in the price of a good or service. Examples of externalities include pollution, noise, and congestion, which impose costs on others beyond the direct consumers of the product or service.
Consuming a pair of Gap jeans, however, does not generate any externalities. While the production of jeans may result in pollution or other negative externalities, the act of wearing a pair of jeans does not impose any costs or benefits on others beyond the individual consumer. Therefore, consuming a pair of Gap jeans is not an example of an externality.
In contrast, producing honey with bees (A), conducting medical research (B), generating electricity (E), and producing college educations (D) can all lead to externalities.
For example, beekeeping can result in honey production, but it may also lead to the spread of bees and pollen to nearby crops, which can benefit or harm neighboring farmers. Similarly, medical research can lead to new treatments and cures that benefit society as a whole, but it may also involve high costs or risks that are not fully reflected in the price of the research.
Generating electricity can result in air pollution and greenhouse gas emissions that harm public health and the environment, while producing college educations can lead to higher taxes for society as a whole due to increased earnings potential for graduates. These examples illustrate how externalities can arise from economic activities and affect third parties beyond the direct consumers or producers involved.
Therefore, The correct option is C. consuming a pair of Gap jeans.