Economics GCSE
Internalising the Externality
What Internalising the Externality means in Economics GCSE, as defined for Pearson Edexcel.
Definition of Internalising the Externality
Government intervention (like a tax) that forces producers or consumers to pay the full social cost of their actions.
Topics that use Internalising the Externality
- Externalities (Pearson Edexcel GCSE)
Related terms
Using Internalising the Externality in the exam
Definition questions usually carry one or two marks, and examiners look for the precise wording. Write the definition from memory, check it against the version above, and then use the term in a longer answer on the same topic so it sticks.
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