Question

Construction is an example of a(n) ____ externality. One way to correct this problem is to impose a tax equal to the externality. This is why many cities have noise ordinances that impose fines and penalties for early-morning and late-evening disturbances than for disturbances at other times of the day.

Answer 1

The correct word for the blank space is: negative.

Step-by-step explanation:

An Externality is a cost or benefit incurred or obtained by a third party that does not influence the factors which generated the cost or benefit. In the same context, negative externalities are those that affect individuals who are not involved in the production process that causes the negative externality. Pollution, noise, traffic, construction works are considered some examples.