Pollution is an example of a ________ externality.
A) negative production
B) positive production
C) negative consumption
D) positive consumption
E) Coasian

Question

Quizplus · Accepted Answer

Pollution is a negative externality that arises from the production process. It is an unintended cost imposed on society, beyond the cost borne by the producer. Pollution results in environmental degradation, health hazards, and reduced quality of life for affected individuals, which are not factored in the producer's decision-making process.

Pollution Is an Example of a ________ Externality