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    Economics GCSE

    Negative externality

    What Negative externality means in Economics GCSE, as defined for AQA, Pearson Edexcel.

    Definitions of Negative externality

    Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.

    Check what you remember

    Read the wording for your board, then hide it and explain Negative externality in your own words. Rough notes are fine. This is a self-check, with no mark or grade.

    Reference: AQA

    An unintended cost imposed on a third party, which the market ignores, leading to over-production.
    AQA · Externalities
    A cost imposed on a third party, such as pollution or noise.
    AQA · Externalities
    A cost imposed on a third party who is not involved in the consumption or production of a good (e.g., pollution, passive smoking).
    Pearson Edexcel · Government intervention (study guide)

    Topics that use Negative externality

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    Using Negative externality in the exam

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