When logging in the Pacific Northwest destroys forests that hikers would have used for eco-tourism,the destruction of the trails is an example of
A) an external cost.
B) a private cost.
C) a government cost.
D) an external benefit.
E) None of the above answers is correct.

Question

Quizplus · Accepted Answer

The destruction of trails in the forests is an example of an external cost, which is a negative impact on a third party that is not reflected in the price of the product or service. In this case, the logging company is not bearing the cost of the damage to the trails and the loss of eco-tourism opportunities.

When Logging in the Pacific Northwest Destroys Forests That Hikers