Positive externality
What Positive externality means in Economics GCSE, as defined for AQA, Pearson Edexcel.
Definitions of Positive externality
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Reference: AQA
An unintended benefit provided to a third party, which the market ignores, leading to under-consumption.
A benefit enjoyed by a third party, such as education or vaccinations.
A benefit enjoyed by a third party who is not involved in the consumption or production of a good (e.g., herd immunity from vaccines).
Topics that use Positive externality
- Externalities (AQA GCSE)
- Government intervention (Pearson Edexcel GCSE)
Related terms
- Negative externality
- Externality
- Government Failure
- Market failure
- Misallocation of resources
- Negative externalities
- Production versus consumption
- Public Good
Using Positive externality in the exam
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