Negative externalities, such as air pollution, pose a social problem because they
A) benefit buyers but not sellers
B) are intended and are market derived
C) have a positive value for those who create them
D) have a negative value for those who create them
E) are difficult to internalize

Question

Quizplus · Accepted Answer

Negative externalities like air pollution are a social problem because they impose costs on society that are not reflected in the market transactions of the goods or services that generate them. These costs are borne by individuals or communities who are not directly involved in the transactions, making it difficult to internalize these external costs without regulatory or other interventions.

Negative Externalities, Such as Air Pollution, Pose a Social Problem