What are externalities?
A) Unpaid benefits or uncompensated costs
B) External services
C) Outsourced goods
D) Marginal costs

Question

Quizplus · Accepted Answer

Externalities refer to the unpaid benefits or uncompensated costs that affect someone who did not choose to incur that benefit or cost. They are often seen in environmental economics, where pollution from a factory might harm local residents (a negative externality) or where a beekeeper's bees pollinate nearby crops (a positive externality), benefiting the crop owners without direct compensation to the beekeeper.

What Are Externalities