An _______ results from any action that creates benefits for others outside of any market exchange.
A) external benefit
B) outside benefit
C) internal benefit
D) endogenous benefit

Question

Quizplus · Accepted Answer

An external benefit, also known as a positive externality, is a benefit that is gained by individuals or society as a whole as a result of an economic activity, but is not reflected in the market price. For example, a beekeeper who maintains hives to pollinate crops provides an external benefit to farmers who benefit from increased yields, but this benefit is not reflected in the price the beekeeper charges for honey.

An _______ Results from Any Action That Creates Benefits for Others