Question 8(Multiple Choice Worth 4 points) 02.07 LC) Nhich of the following is another name for a negative externality? Appreciation Depreciation Third-party cost Third-party benefit

## Step 1<br />A negative externality is a cost that affects a party who did not choose to incur that cost. This is a type of market failure where the cost of an activity is not fully borne by those who engage in it.<br /><br />## Step 2<br />The term "Third-party cost" is another name for a negative externality. This term refers to the cost that is suffered by a third party as a result of an economic transaction.<br /><br />## Step 3<br />The other options, "Appreciation", "Depreciation", and "Third-party benefit", do not refer to a negative externality. "Appreciation" and "Depreciation" are terms related to the increase or decrease in the value of an asset over time, respectively. "Third-party benefit" is the opposite of a negative externality, as it refers to a benefit that is enjoyed by a third party as a result of an economic transaction.