Sometimes, when goods are produced and consumed, side effects are felt by people who are not directly involved in the market exchanges. In general, these side effects are called
A)Coase effects.
B)externalities.
C)public goods.
D)internalities.

Question

Quizplus · Accepted Answer

Externalities are the side effects of market transactions that affect individuals who are not directly involved in the exchange. These effects can be positive (such as the creation of jobs in a local community) or negative (such as pollution).

Sometimes, When Goods Are Produced and Consumed, Side Effects Are