Private, External and Social Effects
Private, External and Social Effects
A private cost or benefit falls on the decision maker involved in a transaction. An external cost or benefit spills over to a third party who is neither the buyer nor the seller.
Step-by-step lessons covering Edexcel A A Level Economics 1.3.2 Externalities for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.