Examlex
Which of the following is a true statement?
External Costs
Costs of a transaction or activity that affect parties who did not choose to incur that cost and are not reflected in market prices, often necessitating government intervention.
External Benefits
The positive effects of a transaction or an activity on an uninvolved third party or the society at large, which are not reflected in the market prices.
Externality
An economic term describing an indirect effect of a transaction not reflected in the market price, affecting third parties who did not choose to be involved.
Hydroelectric Power
Energy generated by converting the energy of falling or flowing water into electricity, commonly through the use of dams.
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