What do economists use the term externalities to refer to?
A) the shipment of goods and services to foreign nations
B) the importation of goods and services from foreign nations
C) benefits or costs of actions that spill over onto third parties
D) management decisions made outside of one's own department or division

Question

Quizplus · Accepted Answer

Economists use the term externalities to refer to the benefits or costs of actions that spill over onto third parties. This can include pollution, traffic congestion, and noise pollution, among others.

What Do Economists Use the Term Externalities to Refer To