Asked by Branton Wallace on Jul 11, 2024
Verified
Externalities can occur as a result of either production or consumption activities.
Externalities
Financial repercussions impacting parties who are not directly involved, which may manifest as either beneficial or detrimental outcomes.
- Understand the importance of public goods, externalities, and the distinction between the needs of the private and public sectors.
Verified Answer
SL
Samantha LibalJul 17, 2024
Final Answer :
True
Explanation :
Externalities can arise from both production and consumption activities, and can have both positive and negative effects on third parties. Examples of production externalities include pollution from factories, while examples of consumption externalities include secondhand smoke from cigarette smokers.
Learning Objectives
- Understand the importance of public goods, externalities, and the distinction between the needs of the private and public sectors.
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