When consumption or production of a product has a harmful side effect that is borne by people not directly involved in the market exchange for that product, the side effect is called a(n)

Question

Quizplus · Accepted Answer

This is known as an external cost, or externality, which occurs when the production or consumption of a product has a side effect that affects individuals not directly involved in the transaction or decision-making process related to that product.

When Consumption or Production of a Product Has a Harmful