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

Question

Quizplus · Accepted Answer

A cost that arises from production or consumption that falls on someone other than the producer or consumer is called a negative externality. This means that the cost is not being paid by the person responsible for it, but by someone else who has no control over the situation. Examples of negative externalities include pollution and traffic congestion.

A Cost That Arises from Production or Consumption That Falls