Construction is an example of aexternality. One way to correct this problem is to impose a tax equal to the externality. This is why many cities have noise ordinances that imposefines and penalties for early-morning and late-evening disturbances than for disturbances at other times of the day.

1. Negative externality

2. Higher

Explanation:

Construction is a negative externality because while the company is reaping benefits from their activities, they are making other people worse off by causing noise pollution to those around. Therefore Imposing higher fines and penalties for early-morning and late-evening disturbances than for disturbances at other times of the day because that is when most people are expected to be in their homes

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