Externalities are:
A) benefits received by people other than the producers and consumers exchanging in the market.
B) costs paid by people other than the producers and consumers exchanging in the market.
C) found either in the form of external benefits or external costs.
D) All of these statements are correct.

Question

Quizplus · Accepted Answer

All the statements are correct. Externalities can either be positive, resulting in external benefits, or negative, resulting in external costs, that are incurred by parties other than the producer and consumer engaging in the market exchange.

Externalities Are