Which of the following is an example of an external cost?
A) taxes
B) the price of a car wash
C) pollution
D) an electricity bill
E) paying a wage that exceeds the minimum wage

Question

Quizplus · Accepted Answer

Pollution is an example of an external cost because it imposes a cost on society that is not borne by the polluter. Pollution can harm human health, damage ecosystems, and result in economic losses, but the polluter does not pay the full cost of these negative impacts. Instead, these costs are external to the market transaction and are borne by society as a whole.

Which of the Following Is an Example of an External