説明中心

externality

[ɪkˌstɜːnˈæləti]

externality Definition

a side effect or consequence of an industrial or commercial activity that affects other parties without this being reflected in the cost of the goods or services involved, such as the pollination of surrounding crops by bees kept for honey.

Using externality: Examples

Take a moment to familiarize yourself with how "externality" can be used in various situations through the following examples!

  • Example

    The pollution caused by the factory is an externality that affects the health of the nearby residents.

  • Example

    The use of pesticides in farming has negative externalities on the environment.

  • Example

    The benefits of education have positive externalities on society as a whole.

externality Synonyms and Antonyms

Synonyms for externality

Phrases with externality

  • a benefit that is enjoyed by a third-party as a result of an economic transaction, without compensation to the third-party

    Example

    An example of a positive externality is the education of a person, which benefits not only the individual but also the society as a whole.

  • a cost that is suffered by a third-party as a result of an economic transaction, without compensation to the third-party

    Example

    An example of a negative externality is pollution caused by a factory, which affects the health of nearby residents without compensation.

  • an externality that arises from the production of goods and services

    Example

    An example of a production externality is the pollution caused by a factory during the production process.

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Summary: externality in Brief

The term 'externality' [ɪkˌstɜːnˈæləti] refers to the side effects or consequences of an industrial or commercial activity that affect other parties without being reflected in the cost of goods or services involved. It can be positive or negative, with examples like the pollination of surrounding crops by bees kept for honey, or the pollution caused by a factory. 'Externality' extends into phrases like 'positive externality,' and 'negative externality,' denoting benefits and costs respectively.