Which of the following is an example of an external cost?

Question

Quizplus · Accepted Answer

External costs are costs that are not accounted for by the person or firm responsible for the action that creates the cost. These costs are often borne by society as a whole. The pollution caused by automobile exhaust is an example of an external cost because it affects the health of people who live in the area, but the cost of the pollution is not borne by the drivers who create it.

Which of the Following Is an Example of an External