
Externality
Impact Beyond Choice
An externality involves outcomes affecting those who didn't choose to be involved.

Residents didn't choose the new highway, but noise pollution is an externality they face.
Not Always Bad
Externalities can be positive, like a park that beautifies the area for all.

The new park's beauty is a positive externality for the neighborhood.
Public Policy Relevance
Governments often step in to correct negative externalities through regulations.

To reduce traffic congestion's externality, the city introduced a carpool policy.
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AftermathConsequenceImpactOutcomeResult
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