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Unit 1
Externalities and Public Goods
Externalities
Description
Externalities are unintended side effects of economic activities that impact third parties who are not directly involved in the market transaction. They can have positive or negative effects that can influence society and the environment in various ways.
Positive Externalities
Positive externalities occur when a ma...
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Transcript
Externalities are outcomes of economic activities that affect third parties who are not directly involved in it. These impacts can be either positive or negative.
Positive externalities occur when an economic activity generates benefits for third parties.
An example is beekeeping. When a beekeeper maintains a hive, the bees pollina...
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