Activities that indiscriminately impose costs on others are externalities.

Question

Quizplus · Accepted Answer

Externalities are defined as costs or benefits that are not reflected in the market price of a good or service. When certain activities impose costs on others without compensating them, it is considered a negative externality. Examples of negative externalities include pollution from factories or noise pollution from loud construction work. Therefore, the statement is true.

Activities That Indiscriminately Impose Costs on Others Are Externalities