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An externality is an unintended side effect that benefits or harms a third party not involved in the activity. Please select the best answer from the choices provided T F

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hisroyal1
Answer: TRUE

"Externality" is the term which is used to describe an unintended side effect that affects a third party that had no involvement in the activity that caused the side effect. The side effect is called a positive externality if it benefits the third party, while it is called a negative externality if it is harmful to the third party.

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