Examlex
Steve is thin and seems to be able to eat as much as he wants while not gaining weight. Which concept is a possible explanation for his ability to stay thin?
Externality
An externality is a cost or benefit caused by a producer that is not financially incurred or received by that producer.
Market Exchange
The process through which goods, services, or assets are traded between buyers and sellers at a determined price.
Negative Externalities
Unintended and unfavourable outcomes of an activity or transaction that affect third-party stakeholders who did not choose to be involved in that activity.
Positive Externalities
Benefits experienced by a third party not directly involved in the production or consumption of a good or service.
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