Negative externalities are costs that affect others external to a choice or a trade.

Question

Quizplus · Accepted Answer

This is a correct definition of negative externalities, which can occur when an individual or group's actions impose costs on others who are not involved in the decision-making process. Examples of negative externalities include pollution from a factory that affects nearby residents, or noise from a construction site that disturbs people living in the area.

Negative Externalities Are Costs That Affect Others External to a Choice