Any time that one's actions create costs for another without the other person's permission, there is
A)an externality.
B)a moral hazard.
C)a pecuniary cost.
D)a trespass.
E)an estappel.

Question

Quizplus · Accepted Answer

This scenario describes an externality, which is a cost or benefit that affects a party who did not choose to incur that cost or benefit. In this case, the actions of one person are creating costs for another person without their permission. Moral hazard refers to a situation where one party takes risks knowing that another party will pay for the potential costs. Pecuniary costs are those that involve the transfer of money. Trespass involves physical or property invasion. Estoppel refers to a legal principle that prevents someone from denying facts that they have already acknowledged.

Any Time That One's Actions Create Costs for Another Without