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None of the things mentioned in the grandparent post are externalities. An externality is a consequence of some action or some transaction for people who were n
by slavik81 8y ago
None of the things mentioned in the grandparent post are externalities. An externality is a consequence of some action or some transaction for people who were not a part of it. A tax or subsidy directly affects the purchaser, and is thus not an externality.