An example of an activity that generates an external cost is
A) national defence services.
B) planting flowers along an interstate highway.
C) eating an apple.
D) dumping soapsuds into a trout stream.

Question

Quizplus · Accepted Answer

Dumping soapsuds into a trout stream generates an external cost because it harms the environment and affects the health of the aquatic ecosystem, which is a cost not borne by the person or entity responsible for the pollution but by society and the environment.

An Example of an Activity That Generates an External Cost