When the cost of an action falls on other than the person (or persons)responsible for the action,which of the following exists?
A)Positive externality
B)Negative externality
C)Externality in consumption
D)Externality in production
E)External cost

Question

Quizplus · Accepted Answer

This situation is known as a negative externality because the cost of the action is being borne by someone other than the person responsible for the action.

When the Cost of an Action Falls on Other Than