Economics GCSE
Externalities
What Externalities means in Economics GCSE, as defined for AQA.
Definitions of Externalities
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Reference: AQA
Costs or benefits affecting third parties, such as factory pollution or education, that arise alongside private costs.
Negative ones such as pollution are among the costs that growth can incur.
Topics that use Externalities
- Economic growth (AQA GCSE)
- Misallocation of resources (AQA GCSE)
Related terms
- Economic welfare
- Factors of production
- Fiscal policy
- GDP per capita
- Indirect taxes
- Inflation
- Market failure
- Monetary policy
Using Externalities in the exam
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