Which of the following is an example of external diseconomies?

Capital Formation, Investment Choice, Information Technology, And Technical Progress MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

Capital Formation, Investment Choice, Information Technology, And Technical Progress

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Capital Formation, Investment Choice, Information Technology, And Technical Progresseconomics-mcqs › capital-formation-investment-choice-information-technology-and-technical-progress
Published
2 Jun 2019
Last updated
28 May 2026

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Explanation

External diseconomies refer to negative effects experienced by third parties due to economic activities. Among the options, environmental pollution is a classic example, as it imposes costs on society not borne by the polluter. The other options represent positive externalities or beneficial investments.

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