externality (Meaning)
externality (n)
the quality or state of being outside or directed toward or relating to the outside or exterior
externality (n.)
State of being external; exteriority
separation from the perceiving mind.
Synonyms & Antonyms of externality
No Synonyms and anytonyms found
externality Sentence Examples
- Externality is an economic term used to describe a cost or benefit that affects a party who did not choose to incur it.
- Negative externalities occur when an activity imposes a cost on a third party without compensation.
- Positive externalities occur when an activity provides a benefit to a third party without compensation.
- Pollution is a classic example of a negative externality, as it imposes a cost on others in the form of health problems and environmental damage.
- Externalities can also occur in the context of production, where the activities of one firm can impose costs or benefits on other firms.
- Congestion is a negative externality that occurs when the actions of one driver impose costs on other drivers in the form of traffic delays and increased fuel consumption.
- Education is a positive externality, as it benefits society as a whole by increasing the productivity and earning potential of individuals.
- Governments often intervene to address externalities, either by imposing taxes or regulations on activities that generate negative externalities, or by providing subsidies for activities that generate positive externalities.
- The Coase Theorem states that, under certain conditions, externalities can be eliminated through voluntary negotiations between the parties involved.
- Externalities are a complex issue with no easy solutions, and there is ongoing debate about the best way to address them.
FAQs About the word externality
the quality or state of being outside or directed toward or relating to the outside or exteriorState of being external; exteriority, separation from the perceiv
No synonyms found.
No antonyms found.
Externality is an economic term used to describe a cost or benefit that affects a party who did not choose to incur it.
Negative externalities occur when an activity imposes a cost on a third party without compensation.
Positive externalities occur when an activity provides a benefit to a third party without compensation.
Pollution is a classic example of a negative externality, as it imposes a cost on others in the form of health problems and environmental damage.
