Identify the correct sequence with regard to externalities:

(A) Leads to negative externalities.
(B) Production by the refining industry pollutes nearby rivers.
(C) Causes harm to people.
(D) Dependent may loose their livelihood.

Choose the correct answer from the options given below:

(B), (C), (D), (A)

The correct answer is Option (3) → (B), (C), (D), (A)

Externalities : Those benefits or harms accruing to another person, firm or any other entity which occur because some person, firm or any other entity may be involved in an economic activity. If someone is causing benefits or good externality to another, the latter does not pay the former. If someone is inflicting harm or bad externality to another, the former does not compensate the latter. 

• (B) Production by the refining industry pollutes nearby rivers. This describes the action or the source of the problem.

• (C) Causes harm to people. This is the immediate consequence of the pollution. Pollution directly harms people (e.g., health issues, loss of clean water).

• (D) Dependent may lose their livelihood. This is a further consequence or impact resulting from the harm caused by pollution (e.g., fishermen who depend on the river, farmers whose crops are affected).

• (A) Leads to negative externalities. This is the economic classification of the entire phenomenon. The pollution, its harm to people, and the loss of livelihood are all examples and consequences of a negative externality.