Question

question 6 (multiple choice worth 4 points)
(mc)
\fracking\ is hydraulic fracturing, or an alternative method of drilling to obtain natural gas deposits. the federal government institutes a new energy policy that includes funding for fracking initiatives in eligible states. which of the following would be a negative externality?
the government may import less oil and natural gas.
the government may have less to spend on oil-drilling infrastructure.
using the tracking method may boost hydro-energy production.
using the tracking method may pollute the water.

Explanation:

Negative externality refers to a cost that a third - party (in this case, the general public in terms of water quality) incurs due to an economic activity (fracking). Pollution of water is a clear negative impact on society that is not accounted for in the private costs of fracking. Boosting hydro - energy production is a positive for energy diversity (not a negative externality). Less spending on oil - drilling infrastructure and less import of oil and gas are economic benefits (not negative externalities).

Answer:

Using the fracking method may pollute the water.