Externality: Difference between revisions
m 1 revision imported: From the summer |
energy>Jmdonev No edit summary |
||
| Line 1: | Line 1: | ||
[[Category:Done 2026-07-01]] | |||
[[File:chinaair.jpg|300px|thumb|Figure 1. Reducing air quality is considered an externality, since the people polluting don't pay the consequences of polluting.<ref>Flickr [Online], Available: https://www.flickr.com/photos/121483302@N02/15489395937</ref>]] | |||
<onlyinclude>An '''externality''' is an effect that an economic transaction has on a party who is not involved in the transaction.</onlyinclude><ref>A. Goolsbee, S. Levitt and C. Syverson. ''Microeconomics''. New York: Worth Publishers, 2013, pp. 645.</ref> Externalities deter a market from producing the equilibrium quantity and price for a good for service. Externalities produce inefficiencies in markets and can eventually produce a [[market failure]] if not internalized in time. | <onlyinclude>An '''externality''' is an effect that an economic transaction has on a party who is not involved in the transaction.</onlyinclude><ref>A. Goolsbee, S. Levitt and C. Syverson. ''Microeconomics''. New York: Worth Publishers, 2013, pp. 645.</ref> Externalities deter a market from producing the equilibrium quantity and price for a good for service. Externalities produce inefficiencies in markets and can eventually produce a [[market failure]] if not internalized in time. | ||
| Line 6: | Line 7: | ||
:::*[[Negative externality]] | :::*[[Negative externality]] | ||
== | ==For Further Reading== | ||
*[[Market failure]] | *[[Market failure]] | ||
*[[Pollution]] | *[[Pollution]] | ||
*[[Deadweight loss]] | *[[Deadweight loss]] | ||
*Or explore a [[Special:Random|random page]] | |||
==References== | ==References== | ||
{{reflist}} | {{reflist}} | ||
[[Category: Uploaded]] | |||
Revision as of 17:53, 25 June 2026
Figure 1. Reducing air quality is considered an externality, since the people polluting don't pay the consequences of polluting.[1]
An externality is an effect that an economic transaction has on a party who is not involved in the transaction.[2] Externalities deter a market from producing the equilibrium quantity and price for a good for service. Externalities produce inefficiencies in markets and can eventually produce a market failure if not internalized in time.
Externalities can be either positive or negative:
For Further Reading
- Market failure
- Pollution
- Deadweight loss
- Or explore a random page
References
- ↑ Flickr [Online], Available: https://www.flickr.com/photos/121483302@N02/15489395937
- ↑ A. Goolsbee, S. Levitt and C. Syverson. Microeconomics. New York: Worth Publishers, 2013, pp. 645.