Question

For a negative externality, the __________________________ than the costs imposed on society as a whole.

Answer 1

Benefit is less

Step-by-step explanation:

An externality is when the activities of an economic agent has either costs or benefits on third party economic agent or the society as a whole.

Externality can either be negative or positive.

Negative externality is when the cost is greater than the benefits to third party economic agent or the society as a whole. E.g. pollution

Positive externality is when the benefit is greater than the cost to third party economic agent or the society as a whole. E.g. research