Explore the potential externalities of building a new shopping center in a rural area, such as increased traffic on nearby roads. Prepare for the USGBC LEED Green Associate certification exam with expert insights.
Table of Contents
Question
When a developer builds a new shopping center in a rural area, one externality might be
A. an increase in profits for the developer
B. an increase in the fees for customer parking
C. an increase in traffic on adjacent roads
D. an increase in installation of rooftop solar
Answer
C. an increase in traffic on adjacent roads
Explanation
When a developer builds a new shopping center in a rural area, one significant externality that may occur is an increase in traffic on adjacent roads. An externality is an unintended or indirect consequence of an economic activity that affects third parties who are not directly involved in the activity.
In this case, the construction and operation of a new shopping center in a rural area will likely attract more customers from surrounding areas. As a result, the roads leading to and from the shopping center will experience a higher volume of traffic. This increased traffic is an externality because it is an unintended consequence of the shopping center development that affects nearby residents and commuters who are not directly involved in the shopping center’s economic activity.
The other options listed are not considered externalities:
A. An increase in profits for the developer is a direct and intended consequence of the shopping center development.
B. An increase in the fees for customer parking is a decision made by the shopping center management and is not an unintended consequence.
D. An increase in the installation of rooftop solar is a potential decision made by the developer or property owner and is not an unintended consequence of the shopping center development itself.
USGBC LEED Green Associate certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the USGBC LEED Green Associate exam and earn USGBC LEED Green Associate certification.