Externalities consist of
A) both costs and benefits
B) only benefits
C) only costs

Question

Quizplus · Accepted Answer

Externalities can be either positive or negative, meaning that they can produce both costs and benefits for individuals or society as a whole. For example, air pollution generated by a factory creates a negative externality imposing costs on society in terms of increased health problems, but the factory's production of goods also generates revenue and employment, producing a positive externality.

Externalities Consist of