1. Are all the costs of making the good included in the price? Externalities

2. An externality is an economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume EOC Study Guide Microeconomics # 4

3. Positive Externalities A positive externality is a beneficial side effect of an action that is felt by other

5. Negative Externalities A negative externality is an adverse side effect of an act that is felt by others

6. Are all of the costs of a business “paid” by the business? Hot Sauce

7. Possible solutions to externalities