Question

How is it possible to bear a cost without realizing it? What are some examples of policies that affect people in ways of which they may not even be aware?

Short answer

Negative Externalities' extra social cost are borne without exactly realising. Example : Pollution costs of industrialisation, health costs of addictive goods.

Step-by-step solution

Basic Concept

Certain extra social costs are borne by people, which are not included in the price of product. & are not paid directly.

These unaccounted extra negative side effects are called Negative Externalities

Detailed Explanation

Many public policies effect people through these negative externalities.

For example : Tax reduction on alcohol to increase government revenue can extra cost or loss in terms of health of consumers.

Subsidies given to encourage industrialisation can also have extra health cost to ambient people due to more pollution. This also degrades their quality of life.