Which statement about externalities is false?

A positive externality of education is the benefit to all of society from an educated population.

Negative externalities are unintended costs generated by the production of some goods and services.

Many public goods and services generate positive externalities.

Only the private sector can create both positive and negative externalities.

Respuesta :

Only the private sector can create both positive and negative externalities.


The false statement about externalities is that only the private sector can create both positive and negative externalities.

What is an externalities?

These means the effect of production which imposes costs or benefits on others which are not reflected in the prices charged for the goods and services being provided.

Therefore, the Option D is correct.

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