What are the scenarios that represent negative externalities for Natasha?
Final answer:Among the given scenarios, the hurricane washing away Natasha's beach house is not a negative externality.
Explanation:The question highlights different scenarios and asks for the option that doesn't represent a negative externality, which is a type of economic consequence that unintentionally impacts an unrelated third party. In the case of Natasha, we're identifying effects she experiences indirectly as a result of activities from others. Options A, C, and D are indeed negative externalities because they are negative consequences that come from others' activities (pollution from cars, obstructed views from new construction, and unlikeable noise).
However, option B, the hurricane that washes away Natasha's beach house, is NOT a negative externality. This is because it's not a cost inflicted by another individual's or group's action but a natural disaster, an event beyond human control. Regardless of any human activity, hurricanes occur due to natural climatic conditions.
Negative Externalities and Natasha's Scenarios
Negative Externalities: Negative externalities are negative consequences experienced by a third party due to the actions of others. In economic terms, negative externalities result in an inefficient allocation of resources and can lead to market failure.
Scenario A: Automobile exhaust from other people's cars makes it harder for Natasha to breathe. This scenario represents a negative externality as Natasha experiences health impacts due to pollution caused by others' vehicle emissions.
Scenario B: The hurricane that washes away Natasha's beach house. This scenario, unlike the others, is not a negative externality. Natural disasters such as hurricanes are not caused by human activities and do not fall under the category of negative externalities.
Scenario C: The new tall building that blocks the view from Natasha's mountain house. This scenario is a negative externality as it affects Natasha's enjoyment of her property due to the actions of others in constructing the building.
Scenario D: The late-night noise made by people in the apartment right above Natasha's apartment that keeps her awake. This scenario is also a negative externality as Natasha experiences discomfort and sleep disturbances due to the noise created by others.
In conclusion, while options A, C, and D represent negative externalities for Natasha, option B, the hurricane washing away her beach house, is not a negative externality as it is a natural event beyond human control. Understanding the concept of negative externalities is essential in assessing the unintended impacts of economic activities on individuals and society.