Externalities involve the imposition of costs or benefits on parties outside an activity or transaction.

Name: Externalities involve the imposition of costs or benefits on parties outside an activity or transaction.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Externalities occur when a third party not directly involved in an activity or transaction experiences costs or benefits as a result of that activity or transaction, without these costs or benefits being reflected in market prices.

Externalities Involve the Imposition of Costs or Benefits on Parties