QUESTION IMAGE
Question
externalities are effects. intended spillover always negative
Brief Explanations
Externalities refer to the spillover effects of economic activities on third - parties. They are not the intended effects of the economic transaction (so not "intended"). Also, externalities can be positive (e.g., a beekeeper's bees pollinating a neighbor's flowers) or negative (e.g., pollution from a factory), so they are not "always negative". The term "spillover" accurately describes externalities as they are the side - effects of economic actions on others.
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spillover