Externalities are social costs that affect parties external to a particular economic transaction.

Name: Externalities are social costs that affect parties external to a particular economic transaction.
Brand: Quizplus
Rating: 4.7 (32 reviews)

Question

Quizplus · Accepted Answer

Externalities are costs or benefits that affect parties who are not involved in a particular economic activity, such as pollution from a factory or improved health from a vaccination program. These costs are often not reflected in the market price, resulting in inefficient allocation of resources.

Externalities Are Social Costs That Affect Parties External to a Particular