When the actions of one party impose a cost on another party, it is called externality.

positive

No worries! We‘ve got your back. Try BYJU‘S free classes today!

negative

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

inverse

No worries! We‘ve got your back. Try BYJU‘S free classes today!

direct

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B negative
Sometimes, actions of a party can have an indirect negative effect on another party. This is called negative externality. A familiar example is the environmental pollution caused by factories which affect the people who live nearby.

Suggest Corrections

Similar questions

Any property or valuable security is given or agreed to be given either directly or indirectly by one party to another party of a marriage is called _________.

Q. What is the document that summarises the key promises, ideas, or plan of action of a political party called?

Q. A government formed with more than one party is called a(n) _________ government.

When one animal copies the appearance, actions, or sounds of another animal to avoid predators, it is called

Q. Where one party is in a position to dominate the will of another and uses his superior position to obtain the consent of a weaker party, the consent is said to be obtained by _______________.

Join BYJU'S Learning Program

When the actions of one party impose a cost on another party, it is called externality.

The correct option is B negativeSometimes, actions of a party can have an indirect negative effect on another party. This is called negative externality. A familiar example is the environmental pollution caused by factories which affect the people who live nearby.

The correct option is B negative
Sometimes, actions of a party can have an indirect negative effect on another party. This is called negative externality. A familiar example is the environmental pollution caused by factories which affect the people who live nearby.