Answer to Question #48109 in Other Economics for Billy

Question #48109
Which of the following provides an example of an externality? The air pollution generated when you drive your car.or The view that passersby and neighbors enjoy when observing your Halloween decorations.or The free concerts neighbors hear when an accomplished musician practices at home.or All of the above.
1
Expert's answer
2014-10-28T14:30:33-0400
First of all it is necessary to define the concept of an externality.
An externality is a consequence of an economic activity that is experienced by unrelated third parties. In other words it occurs when an economic transaction causes a harmful or positive effect to a third party.
So, an example of an externality is all of the above.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS
paypal