Question

Activities that generate external costs will likely be carried out at levels that _____ those that would be efficient.

Answer 1

exceed

Step-by-step explanation:

In simple words, External losses (also recognized of externalities) relate to the economic definition of uninsured environmental or social impacts. Of example , when people purchase gasoline for a vehicle, they charge for the manufacture of the gasoline (internal expense), though not for the expense of consuming the gasoline, like environmental pollution.

Thus, such costs usually occur when the activities are carried at a level upon their efficiency leading to exploitation and degradation of other resources of use.