Externalities Flashcards
(3 cards)
1
Q
Define negative externalities in production
A
A good in which the production has negative 3rd party effects.
2
Q
Define negative externalities in consumption
A
Where the consumption of a good will negatively effect those outside of the market transaction.
3
Q
Private benefit?Private Costs?
A
Private costs/benefits are the costs/benefits to the individual participating in the economic
activity.
