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

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

Quizplus · Accepted Answer

This is the correct definition of an external benefit. It is a positive spillover effect that benefits individuals or groups who are not directly involved in the production or consumption of a good or service.

An External Benefit Is a Benefit from an Activity That