An external benefit is a benefit from an activity that falls on a third party that is not involved in the activity.

Name: An external benefit is a benefit from an activity that falls on a third party that is not involved in the activity.
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Question

Quizplus · Accepted Answer

This is the correct definition of an external benefit, which can also be referred to as a positive externality. Examples include the impact of vaccinations on herd immunity or the beautification of a neighborhood by a homeowner's landscaping efforts.

An External Benefit Is a Benefit from an Activity That