An externality is?

1878EconomicsMedium

AThe uncompensated impact of one person’s actions on the well-being of a bystander

Bthe compensation paid to a firm’s external consultants.

Cthe cost that accrues to the seller in a market

Dthe benefit that accrues to the buyer in a market

Enone of these answers

Correct answer

A. The uncompensated impact of one person’s actions on the well-being of a bystander

Explanation

The correct answer is The uncompensated impact of one person’s actions on the well-being of a bystander.

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