Question

The price that consumers pay for a company's products does not reflect the cost to society of any pollutants or damage to the environment; that cost is called ______ by economists.

Answer 1

Answer:

Externalities

Explanation:

An environmental issue in economic theory is the expense or profit that is levied on a 3rd person by one or more parties that have not agreed to pay the cost or advantage. In the 1920s, the economist Arthur Pigou gradually introduced the idea of externality.