A cost or benefit resulting from some activity that is imposed or bestowed on third parties is
A) a market failure.
B) an externality.
C) a public good.
D) logrolling.

Question

Quizplus · Accepted Answer

An externality is a cost or benefit that affects a party who did not choose to incur that cost or benefit. It can be either positive or negative and occurs outside of a market transaction, impacting third parties.

A Cost or Benefit Resulting from Some Activity That Is