A cost imposed on someone who is neither the consumer nor the producer is called a
A)corrective tax.
B)command and control policy.
C)positive externality.
D)negative externality.

Question

Quizplus · Accepted Answer

A cost imposed on someone who is neither the consumer nor the producer is a negative externality. Negative externalities are costs that are suffered by a third party as a result of an economic transaction. Examples of negative externalities include pollution, traffic congestion, and noise pollution. Negative externalities can have harmful effects on society and the environment, which is why economists and policymakers often advocate for measures to mitigate or prevent these externalities.

A Cost Imposed on Someone Who Is Neither the Consumer