What is an externality?

An externality is the effect of an economic transaction on a third party not involved in the original economic transaction, and can be negative or positive. Negative: Pollution. Positive: Education

ES
Answered by Elliott S. Business Studies tutor

2435 Views

See similar Business Studies IB tutors

Related Business Studies IB answers

All answers ▸

Discuss the view that the best way to achieve greater equity in the distribution of income in a country is to use a progressive tax system


What is fiscal policy?


(based on a case study) Should Shane outsource his employee training programme


Explain the limitations of the balance sheet as a financial statement


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences