The byproducts of production or consumption that impose costs on other consumers or firms are known as _____
A)negative externalities.
B)transaction costs.
C)sunk costs.
D)positive externalities.
E)moral hazards.

Question

Quizplus · Accepted Answer

Negative externalities are the costs imposed on third parties by the production or consumption of goods or services. These costs are not reflected in the market price and are thus not borne by the producers or consumers, but rather by individuals or groups who are not directly involved in the economic transaction.

The Byproducts of Production or Consumption That Impose Costs on Other