An _______ results from any action that imposes costs on others outside of any market exchange.
A) internal cost
B) outside cost
C) external cost
D) endogenous cost

Question

Quizplus · Accepted Answer

An external cost is a cost that is not factored into the market price and is instead borne by society as a whole. It is also known as a negative externality. Examples include pollution, noise, and traffic congestion. Internal costs, on the other hand, are the costs borne by the producer or consumer in a market transaction, while outside costs and endogenous costs are not standard economic terms.

An _______ Results from Any Action That Imposes Costs on Others