Externalities refer to the side effects of production or consumption that cause private and social costs to differ.

Name: Externalities refer to the side effects of production or consumption that cause private and social costs to differ.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Externalities are indeed the side effects or consequences of industrial or commercial activities that affect other parties without this being reflected in market prices, causing a discrepancy between private and social costs (or benefits).

Externalities Refer to the Side Effects of Production or Consumption