What is an externality?

An externality is the effect of an economic transaction on a third party not involved in the original economic transaction, and can be negative or positive. Negative: Pollution. Positive: Education

Related Business Studies IB answers

All answers ▸

What is fiscal policy?


What is meant by the term "economies of scale" and what types of EOS exist?


Should I always plan my essays during exams, even when there is not a lot of time available?


What is a SWOT analysis and how does it help the business?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo
Cookie Preferences