Externalities are generated by the consumption of goods.

Name: Externalities are generated by the consumption of goods.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Externalities are effects generated by the production or consumption of goods or services that affect third parties who are not involved in the transaction. Therefore, externalities can be generated by both production and consumption, but in this case, the statement refers specifically to consumption.

Externalities Are Generated by the Consumption of Goods