Dumping raw sewage into Boston Harbor is an example of
A)a negative externality
B)a positive externality
C)a private cost
D)a sunk cost
E)an inverse cost

Question

Quizplus · Accepted Answer

Dumping raw sewage into Boston Harbor imposes a cost on the individuals and businesses who use the harbor for recreation and fishing, but this cost is not reflected in the private cost of the entity that is doing the dumping. This is a classic example of a negative externality, where the cost is borne by third parties who are not involved in the transaction.

Dumping Raw Sewage into Boston Harbor Is an Example of