All externalities:
A) are harmful to society and create costs external to the decision maker.
B) are beneficial to society and create benefits external to the decision maker.
C) create either a cost or benefit to a person other than the person who caused it.
D) are addressed by the government through taxation.

Question

Quizplus · Accepted Answer

Externalities can either create a cost or benefit to a person other than the person who caused it. They may not necessarily be harmful or beneficial to society as a whole.

All Externalities