What Is an Externality? List the Various Types of Externalities

question 31

Essay

What is an externality? List the various types of externalities. Discuss why externalities justify government intervention.

---

Definitions:

Delphi Technique

A method used for forecasting or decision making that involves a panel of experts answering questionnaires in several rounds, with the anonymous responses being aggregated and shared with the panel after each round until a consensus is reached.

Expert Opinion

Insights or views given by a person recognized as an authority in a specific field, often used to inform decisions or clarify complex issues.

Management Forecast

The process of predicting future trends, outcomes, or behaviors in business operations based on current data and analysis.

Trend Analysis

The practice of collecting information and attempting to spot a pattern, or trend, in the data, often used for predicting future events or behaviors.