A cost that arises from the production or consumption that falls on someone other than the producer or consumer is called
A) a negative benefit.
B) a public choice impact.
C) a positive externality.
D) a negative externality.
E) a private good.

Question

Quizplus · Accepted Answer

A negative externality is a cost that falls upon someone other than the producer or consumer. This cost is not taken into account when the producer or consumer makes their decision, resulting in an inefficient allocation of resources. Examples of negative externalities include pollution and noise from factories or traffic.

A Cost That Arises from the Production or Consumption That