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Explain in Your Own Words: 1) What Is an Externality

question 93

Essay

Explain in your own words: 1) What is an externality? and 2) What is the difference between a negative and positive externalities. Provide examples.


Definitions:

Political Union

A type of state which is composed of or created out of smaller states, territories, or countries.

Cultural Identities

These are the shared beliefs, values, customs, and characteristics that define a group of people or a culture.

Ethnic Groups

Collections of people who share cultural practices, languages, historical backgrounds, and sometimes physical characteristics.

Multiethnic Societies

Societies comprised of multiple ethnic groups, often characterized by a rich diversity of cultures, languages, and traditions.

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