eco 233 - 3 - that impacts people all over the world not...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Dustin Johnston Eco 233 February 20, 2008 Dr. Ruiz [Type text] [Type text] An externality when referring to economics is an impact on a party not involved in an economic transaction. An externality is basically where a party that does not have a direct stake in the transaction is impacted by an outside force. A good example of a bad externality is air pollution produced by vehicles
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: that impacts people all over the world not just the person producing the pollution. However not all externality’s are bad, as it may first appear, every person that plants a tree even if it is simply so that they may pick its fruit is helping everyone else around the world because these trees take in air pollution and produce breathable oxygen....
View Full Document

This note was uploaded on 06/20/2011 for the course ECO 233 taught by Professor Gonzales during the Spring '08 term at Sam Houston State University.

Ask a homework question - tutors are online