Examlex
Match the graph to one of the listed functions.
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External Costs
Costs caused by a business activity that are not borne by the business itself, but by other people or the environment.
External Benefits
Benefits from an economic activity experienced by parties not directly involved in the transaction, often leading to positive spillovers in society.
Subsidizing Production
The act of providing financial support to companies or industries to reduce the cost of producing goods or services, often to encourage production or lower prices for consumers.
External Costs
Costs that affect parties who are not directly involved in the production or consumption of a good or service, often leading to market failures.
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