What makes a cost or benefit an externality?
A
A government cost or benefit created by a tax that changes the market price.
B
A private cost or benefit affecting consumers that is fully reflected in the market price.
C
A financial gain or loss shared equally by buyers and sellers through the market price.
D
A spillover cost or benefit affecting third parties that is not reflected in the market price.
7.4.3 definition of positive externality and negative externality Flashcards
24 flashcards on CIE Intl A Level Economics 7.4.3 definition of positive externality and negative externality: the key terms and definitions you need to recall.