A free-trade agreement lowers restrictions on trucking across international borders. Which of the following would be a negative externality for the local environment?

Higher costs for domestic goods
Fewer imports of renewable resources
More water consumption
An increase in air pollution

Question

A free-trade agreement lowers restrictions on trucking across international borders. Which of the following would be a negative externality for the local environment?

 Higher costs for domestic goods
 Fewer imports of renewable resources
 More water consumption
 An increase in air pollution

rane · Answer

A negative externality is a cost that is suffered by a third party as a result of an economic transaction. In a transaction, the producer and consumer are the first and second parties, and third parties include any individual, organisation, property owner, or resource that is indirectly affected.


Now can u have a guess what could it be?