What is externality?

  • -1 votes

positive and negative

Posted Sun 3rd June, 2012 @ 08:24 by Shwini Rai

2 Answers

  • 2 votes

A spill-over cost or benefit to a member of a third party (Someone who was not apart of the original transaction).

e.g Negative Externalities of Consumption - Cigarettes, fireworks. 

Answered Mon 8th October, 2012 @ 11:28 by Alex
  • 0 votes

Here's a very good description of 'Externalities' and there are also a wide range of videos which help explain economic ideas covered in AS economics 

http://www.youtube.com/watch?v=yC5R9WPId0s&feature=channel&list=UL

Enjoy! :) 

Answered Tue 9th October, 2012 @ 07:01 by Alex