The reason that air and water pollution impose external costs is that
A) providers of goods and services ignore costs that they do not have to pay.
B) they affect the quality of the out-of-doors.
C) environmentalists object to the degradation of the earth.
D) the damage from pollution crosses international boundaries.

Question

Quizplus · Accepted Answer

Providers of goods and services often ignore the costs of pollution because they are not directly affected by it and do not have to pay for any damage caused. These costs are therefore external to their business and are imposed on society as a whole, hence the term "external costs".

The Reason That Air and Water Pollution Impose External Costs