Marjean walks to work every day along a busy road. As she does so, she breathes in the fumes of many cars, often arriving at work coughing. The economic term for the impact of the cars on Marjean is:

Question

Quizplus · Accepted Answer

The economic term for the impact of the cars on Marjean is an externality, which is a cost or benefit imposed on a third party who has no control over the decision that caused the cost or benefit. In this case, Marjean is experiencing a negative externality because she is being harmed by the pollution caused by the cars, but she has no control over their emissions.

Marjean Walks to Work Every Day Along a Busy Road