Regulations are not always effective, but without any regulations, the cost of producing certain chemicals, for example, is borne by the workers who suffer diseases, ailments, or death; these are called __________.

Question

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Negative externalities are the costs or negative effects that are incurred by some third party or parties when producing or consuming a particular product or service. In the absence of regulations, producers may not take these costs into account, resulting in situations where workers suffer from diseases, ailments, or death due to exposure to chemicals or other environmental hazards. By creating regulations that require companies to take these costs into account, negative externalities can be reduced or eliminated.

Regulations Are Not Always Effective, but Without Any Regulations, the Cost