What is meant by an environmental externality?
Answer and explanation
Correct answer: An effect whose cost or benefit is not fully included in a market transaction
An environmental externality occurs when an activity affects people or ecosystems outside the direct market transaction, without that effect being fully reflected in the price. Factory pollution is a negative externality because society bears part of the health and cleanup cost. Benefits such as urban shade can be positive externalities. Thus A gives the general definition.
Frequently asked questions
What is the correct answer to this question?
An effect whose cost or benefit is not fully included in a market transaction
Why is this the correct answer?
An environmental externality occurs when an activity affects people or ecosystems outside the direct market transaction, without that effect being fully reflected in the price. Factory pollution is a negative externality because society bears part of the health and cleanup cost. Benefits such as urban shade can be positive externalities. Thus A gives the general definition.
Which subject and chapter does this question cover?
This is a Class 11 Geography question. Chapter: Geography as a Discipline. Topic: Geography as an integrating discipline.
Student feedback
Was this question useful?
👍 0 Helpful 👎 0 Not helpful
Yes 0% No 0%
0 responsesStudent Reviews
No published reviews yet.
