Negative externality
What Negative externality means in Economics GCSE, as defined for AQA, Pearson Edexcel.
Definitions of Negative externality
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Reference: AQA
An unintended cost imposed on a third party, which the market ignores, leading to over-production.
A cost imposed on a third party, such as pollution or noise.
A cost imposed on a third party who is not involved in the consumption or production of a good (e.g., pollution, passive smoking).
Topics that use Negative externality
- Externalities (AQA GCSE)
- Government intervention (Pearson Edexcel GCSE)
Related terms
- Positive externality
- Externality
- Government Failure
- Market failure
- Misallocation of resources
- Negative externalities
- Production versus consumption
- Public Good
Using Negative externality in the exam
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