The costs of environmental clean-ups absorbed by downstream individuals, companies, or municipalities are referred to as:
A)Surrogates
B)Externalities
C)Future impacts
D)Collateral damages
E)Ethical costs

Question

Quizplus · Accepted Answer

Externalities are costs or benefits that are not reflected in the prices of goods or services, and are instead borne by society as a whole. Environmental clean-up costs that are not factored into the production or consumption of goods and services are a prime example of negative externalities. Downstream individuals, companies, or municipalities are forced to bear the costs of environmental clean-ups, which can have significant financial, health, and social impacts.

The Costs of Environmental Clean-Ups Absorbed by Downstream Individuals, Companies