Unintended costs that are imposed on third parties as a result of an economic activity are called:
A)marginal costs.
B)direct costs.
C)negative externalities.
D)positive externalities.
E)positive costs.

Question

Quizplus · Accepted Answer

Negative externalities are the unintended costs that affect third parties due to economic activities, while positive externalities are the unintended benefits that affect third parties. Marginal costs are the additional costs incurred by producing one more unit of a good or service. Direct costs are the costs that are directly associated with producing a good or service. Positive costs are not a recognized economic term.

Unintended Costs That Are Imposed on Third Parties as a Result