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externality - 4 dictionary results

ex⋅ter⋅nal⋅i⋅ty

  [ek-ster-nal-i-tee]
Use externality in a Sentence
–noun, plural -ties.
1. the state or quality of being external.
2. something external; an outward feature.
3. excessive attention to externals.
4. an external effect, often unforeseen or unintended, accompanying a process or activity: to eliminate externalities such as air pollution through government regulation.
Origin:
1665–75; external + -ity
Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2009.
Cite This Source Link To externality
ex·ter·nal·i·ty   (ěk'stər-nāl'ĭ-tē)   
n.   pl. ex·ter·nal·i·ties
  1. The condition or quality of being external or externalized.
    1. Something that is external.
    2. An incidental condition that may affect a course of action: "Our economic system treats environmental degradation as an externality—a cost that does not enter into the conventional arithmetic that determines how we use our resources" (Barry Commoner).
The American Heritage® Dictionary of the English Language, Fourth Edition
Copyright © 2009 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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Externality

Ex`ter*nal"i*ty\, n. State of being external; exteriority; (Metaph.) separation from the perceiving mind.

Pressure or resistance necessarily supposes externality in the thing which presses or resists. --A. Smith.
Webster's Revised Unabridged Dictionary, © 1996, 1998 MICRA, Inc.
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Externality

A consequence of an economic activity that is experienced by unrelated third parties. An externality can be either positive or negative.

Investopedia Commentary

Pollution emitted by a factory that spoils the surrounding environment and affects the health of nearby residents is an example of a negative externality. An example of a positive externality is the effect of a well-educated labor force on the productivity of a company.

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See also: Economics, Macroeconomics, Microeconomics

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