2. an externality in which a third - party bears a cost is referred to as a ______ externality.\nreal\nnegati…

2. an externality in which a third - party bears a cost is referred to as a ______ externality.\nreal\nnegative\npositive\nnone of the above

2. an externality in which a third - party bears a cost is referred to as a ______ externality.\nreal\nnegative\npositive\nnone of the above

Answer

Brief Explanations:

In economics, a negative externality occurs when a third - party bears a cost due to an economic activity. For example, pollution from a factory affects nearby residents who are not part of the production process.

Answer:

B. negative