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Define "Externality

question 20

Essay

Define "externality." Give an example of an external cost. Explain why resources will not be allocated efficiently if externalities are present. How can the problem of externalities be addressed?


Definitions:

Dramatism

A method of analysis used in communication and sociolinguistics, viewing life as a drama and understanding human interaction through narrative contexts.

Empiricism

A philosophical approach that emphasizes the role of experience and evidence from the senses in the formation of knowledge.

Demonstrable Fact

Information that can be proven with evidence.

Qualitative Research

A research method focused on understanding phenomena from a human perspective, often involving collecting and analyzing non-numerical data such as text, images, or videos.

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