A positive externality is when die to the transaction between two parties the third party gets an external benefit. And a negative externality is an external loss that occurs to the unrelated third party. True / False.

Question

Yael Coleman

Social Studies

28 April, 08:50

A positive externality is when die to the transaction between two parties the third party gets an external benefit. And a negative externality is an external loss that occurs to the unrelated third party. True / False.

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Answers (1)

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Callum Dickerson · Answer 1

True

Explanation:

A positive externality or an external benefit that occurs if some of the benefits of the production or consumption of a product spillover into a third party that does not have to pay and even if you don't get vaccinated and others get it first. While a negative externality or the diseconomy is one that imposes a negative impact and effects on the unrelated third party and due to it imposes the costs to the product and the services of polluting effects.