An action by an economic agent that imposes costs on other economic agents is referred to as a:

Question

Quizplus · Accepted Answer

A negative externality is an action that imposes costs on other economic agents who are not directly involved in that action or transaction. This can lead to market inefficiencies and can result in social costs that are not captured in individual transactions. Examples of negative externalities include pollution, noise from construction, or the spread of disease.

An Action by an Economic Agent That Imposes Costs on Other