externality in a sentence
n.
📚 Grade Level: Grade 10, Grade 11, Grade 12
Definition
Externality refers to a consequence of an economic activity that affects third parties who did not choose to be involved, which can be either positive or negative.
Sample Sentences
- The factory's pollution created a negative externality that affected the health of nearby residents.
- Economists often discuss how positive externalities, like education, benefit society as a whole.
- Understanding externalities is crucial for creating effective environmental policies.
- The rise of electric vehicles is seen as a way to reduce the negative externalities of traditional gasoline cars.
- When assessing public projects, planners must consider the potential externalities they may generate.