What term describes the costs imposed on society by pollution that are not borne by the polluter?

• A. Internalities
• B. Externalities
• C. Legalities
• D. Accountabilities

Answer: (B)

The term that best describes the costs imposed on society by pollution, which are not borne by the polluter, is externalities. Externalities refer to the unintended side effects of an economic activity that affect third parties who did not choose to be involved in that particular activity. In the case of pollution, the negative impacts—such as health issues, environmental degradation, and reduced quality of life—are felt by the community or society as a whole, rather than directly by the polluter. This disconnect often leads to a situation where polluters do not fully account for the damage their actions cause, leading to over-pollution and under-regulation.

In contrast, internalities would refer to costs that a polluter fully recognizes and incorporates into their decisions. Legalities pertain to the laws and regulations governing pollution, while accountabilities focus on the responsibilities of individuals or organizations. Therefore, externalities are the critical economic concept that highlights how pollution affects society beyond the polluter's immediate financial liability.