Why are negative externalities difficult to measure in practice?
A) because most external costs are nonpecuniary in nature
B) because the marginal value of cleaner air is close to zero
C) because the effects of pollution are subjective in nature
D) because some resources are owned by society and therefore have no opportunity cost

Question

Quizplus · Accepted Answer

Negative externalities are difficult to measure in practice because many of the costs associated with them are nonpecuniary in nature, meaning that they cannot be easily quantified in monetary terms. For example, the cost of decreased air quality due to pollution cannot be measured solely in terms of dollars and cents, as the effects on human health and the environment are also important considerations.

Why Are Negative Externalities Difficult to Measure in Practice