Economics B A-Level
Third-party effects
What Third-party effects means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Third-party effects
Check what you remember
Read the wording for your board, then hide it and explain Third-party effects in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
Costs or benefits imposed on third parties not directly involved in the transaction when a good or service is produced or consumed.
Topics that use Third-party effects
- Market failure in society (Pearson Edexcel A-Level)
Related terms
- Demerit goods
- Information failure
- Information gaps
- Market failure
- Positive externalities
- Rational decision making
- Resource allocation
- Resource misallocation
Using Third-party effects in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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