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Define externality. Give an example of …

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Define externality. Give an example of negative externality. What is its impact on welfare?

Posted by Parneet Kaur 3 years, 11 months ago

CBSE > Class 12 > Economics

1 answers

Nagendran Krishna 3 years, 11 months ago

Externalities refers to good and bad impact of economic activity without paying price or penality negative externalities cause loss of social welfare and also don't pay the penality eg: an industry creates air pollution which causes lot of respiratory diseases for the people and they did not pay the penality

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