ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An external benefit is a benefit received by people other than the consumers or producers trading in the market. In other words, an external benefit is a benefit to bystanders.

Detailed explanation-2: -External costs (also known as externalities) refer to the economic concept of uncompensated social or environmental effects. For example, when people buy fuel for a car, they pay for the production of that fuel (an internal cost), but not for the costs of burning that fuel, such as air pollution.

Detailed explanation-3: -In economics, there are four different types of externalities: positive consumption and positive production, and negative consumption and negative production externalities. As implied by their names, positive externalities generally have a positive effect, while negative ones have the opposite impact.