External costs are partly caused by:

Question

Quizplus · Accepted Answer

External costs arise due to the growth and expansion of a modern economy, which results in various negative consequences such as pollution, deforestation, and depletion of natural resources. As the economy grows, the demand for goods and services increases, which in turn leads to more production and consumption, and subsequently, additional stress on the environment. This, in turn, causes externalities, such as pollution, which imposes an economic cost on society that is not reflected in the cost of the product or service, but rather externalized to society or the environment.

External Costs Are Partly Caused By