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Externality

usgb/ˌekstɜːrˈnæləti/Volume
Left Definition 1 of 2Right
LampPro Tip 1/3
Impact Beyond ChoicePlay
An externality involves outcomes affecting those who didn't choose to be involved. SlideResidents didn't choose the new highway, but noise pollution is an externality they face.
LampPro Tip 2/3
Not Always BadPlay
Externalities can be positive, like a park that beautifies the area for all. SlideThe new park's beauty is a positive externality for the neighborhood.
LampPro Tip 3/3
Public Policy RelevancePlay
Governments often step in to correct negative externalities through regulations. SlideTo reduce traffic congestion's externality, the city introduced a carpool policy.