The costs of lead contamination have been estimated to be $1 billion for medical care of those sickened by lead,plumbing repairs,and reduced earnings of those affected by lead.This $1 billion can best be classified as:

Question

Quizplus · Accepted Answer

The $1 billion cost of lead contamination represents the social costs of market failure. This is because the market has failed to properly account for the negative externalities of lead contamination, and therefore the costs have been externalized onto society as a whole. The costs include medical care, plumbing repairs, and reduced earnings of those affected, and are not accounted for by the market.

The Costs of Lead Contamination Have Been Estimated to Be