The negative consequences of harvesting a natural resource,such as the soil erosion and sedimentation of a river that occur after a forest is logged,typically are not included in the market price of the resource; these costs are referred to as
A)externalities.
B)byproducts.
C)coincidentals.
D)unintended consequences.

Question

Quizplus · Accepted Answer

The negative consequences that are not included in the market price of a resource are referred to as externalities. These costs are usually incurred by third parties and are not reflected in the price of the resource. In the case of logging, the externalities are soil erosion and sedimentation of rivers, which can have adverse effects on the environment and local communities.

The Negative Consequences of Harvesting a Natural Resource,such as the Soil