QUESTION IMAGE
Question
- what are externalities? consumer preferences government price supports perfect competition unintended side effects of economic activity
Brief Explanations
Externalities in economics refer to the unintended consequences of economic activities that affect third - parties not involved in the production or consumption decision. They can be positive (e.g., a beekeeper's bees pollinating a neighbor's crops) or negative (e.g., pollution from a factory affecting nearby residents). The other options are not related to the definition of externalities.
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Unintended side effects of economic activity