What is an externality?
A)A benefit realised by the purchaser of a good or service.
B)A cost paid for by the producer of a good or service.
C)A benefit or cost experienced by someone who is not a producer or consumer of a good or service.
D)Anything that is external or not relevant to the production of a good or service.

Question

Quizplus · Accepted Answer

An externality is a benefit or cost experienced by someone who is not a producer or consumer of a good or service. It is a spillover effect of the production or consumption of a good or service that affects a third party in a positive or negative way. Examples include pollution, traffic congestion, and education.

What Is an Externality