Asked by Viktoriia Gervasi on Jul 25, 2024
Verified
An external benefit is a benefit from an activity that falls on a third party which is not involved in the activity.
External Benefit
A benefit that results from an economic activity which accrues to unrelated third parties.
Third Party
An entity involved in a transaction or agreement who is not one of the principal parties.
- Define and identify external benefits and their impact on third parties.
Verified Answer
LJ
Lalah JonesJul 27, 2024
Final Answer :
True
Explanation :
This is the correct definition of an external benefit. It is a positive spillover effect that benefits individuals or groups who are not directly involved in the production or consumption of a good or service.
Learning Objectives
- Define and identify external benefits and their impact on third parties.