What is an externality? How are positive externalities different from negative externalities?
What will be an ideal response?
An externality is a by-product of an activity that hurts or helps someone who is not involved in that activity. A negative externality imposes a burden or cost on others. A positive externality confers benefits on others.
Economics
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The tragedy of commons is the
A) underuse of a common resource. B) absence of incentives for people to pay for what they consume. C) fact that common resources are nonrival. D) overuse of a common resource.
Economics
An improvement in technology would shift which of the following curve(s)?
a. aggregate demand and short-run aggregate supply b. only the short-run aggregate supply c. only the aggregate demand d. short-run and long-run aggregate supply
Economics