Externalities are created when parties not involved in an economic transaction are affected by it.

Name: Externalities are created when parties not involved in an economic transaction are affected by it.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Externalities refer to the positive or negative impact of economic transactions on third parties who are not directly involved in the transaction. These impacts can be felt in the form of costs or benefits and are usually not taken into account by the parties involved in the transaction.

Externalities Are Created When Parties Not Involved in an Economic