All externalities:
A)are harmful to society and create costs external to the decision maker.
B)are beneficial to society and create benefits external to the decision maker.
C)create either a cost or benefit to a person other than the person who caused them.
D)are addressed by the government through taxation.

Question

Quizplus · Accepted Answer

Externalities can be either positive or negative, meaning they can create costs or benefits for individuals not directly involved in the transaction or decision that generated the externality.

All Externalities