Externalities Are the Unintended Negative (Or in Some Cases Positive)

question 40

True/False

Externalities are the unintended negative (or in some cases positive) consequences that an economic transaction between two parties can have on some third party.

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Definitions:

Philanthropic Agencies

Organizations that donate funds, resources, or services to causes aimed at improving public welfare or addressing social issues.

Poverty

A condition where individuals or communities lack financial resources and essentials for a minimum standard of living.

Crime

Acts in violation of the legal codes which govern society, ranging from minor offenses to serious felonies, impacting individuals and communities.

Violence

The use of physical force so as to injure, abuse, damage, or destroy.