What is an externality in economics?

A cost or benefit not reflected in market price.

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  1. A type of export
  2. A cost or benefit not reflected in market price ✔
  3. An extra bus stop

Why: Externalities are costs or benefits, like pollution, that market prices do not reflect.

Huh, didn't know that: Externalities are costs or benefits, like pollution, that market prices do not reflect.

The dad joke
Externalities are costs that sneak outside the price tag.
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References

Answer: A cost or benefit not reflected in market price. Externalities are costs or benefits, like pollution, that market prices do not reflect.

  1. Sustainability en.wikipedia.org/wiki/Sustainability
    Economics describes such factors as externalities
    Checked 2026-11-07.

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