what-is-the-impact-of-negative-externalities-on-resource-allocation

Question

What is the impact of negative externalities on resource allocation?

Accepted Answer

Negative externalities lead to inefficient allocation by causing overuse of resources.

Answer

Negative externalities lead to efficient allocation by reducing demand.

Answer

Negative externalities have no impact on resource allocation.

Answer

Negative externalities lead to underuse of resources, increasing efficiency.