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Externalities, positive externalities and negative externalities

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Externalities, positive externalities and negative externalities

Posted by Ganga B S 7 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Ronak Sharma 7 years, 11 months ago

Externalities refer to the good and bad effects of an economic activity without paying any price or penalty for it. IF there is a park nearby our house, it will increase our welfare so it is a positive externality but if there is a factory creates pollution nearby our house then it will decrease our welfare so it is negative externality.

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