If pollutants from smoke stacks in a city such as Newark causes people to paint their homes and cars more frequently, this implies

Question

Quizplus · Accepted Answer

External costs are costs that are not borne by the person or firm responsible for the action that created the cost. In this case, the pollutants from the smoke stacks in the city are causing people to incur more frequent costs of painting their homes and cars, which is a cost that is external to the smoke stack operators but is being borne by the home and car owners. Therefore, the correct answer is B: external costs on home and car owners.

If Pollutants from Smoke Stacks in a City Such as Newark