If a person does NOT pay all costs associated with a particular resource-using activity, then

Question

Quizplus · Accepted Answer

When a person does not pay all costs of a resource-using activity, there are costs that are not internalized or accounted for as private costs. These costs are the external costs of the activity which are borne by society as a whole. These external costs can include environmental damage, health impacts, or other social costs that are not reflected in the private costs of the activity. Therefore, the social costs of the activity are greater than the private costs of the activity.

If a Person Does NOT Pay All Costs Associated with a Particular