_________________ are costs imposed on third parties.

Question

Quizplus · Accepted Answer

Negative externalities are the costs imposed on third parties who are not involved in the original transaction or decision-making. They are costs that are not captured by the producer or consumer, but are instead passed on to others in the form of pollution, congestion, noise, or other negative impacts. Positive externalities, on the other hand, are benefits that accrue to third parties, such as increased property values or reduced crime rates. Positive private costs and benefits, meanwhile, are costs and benefits that are internal to the decision-maker and are taken into account in their decision making.

_________________ Are Costs Imposed on Third Parties