Question

An unintended side effect that benefits or harms a third party not involved in the activity is:

a. a condition of oligopoly.
c. a problem caused by inadequate competition.
b. an externality.
d. price discrimination.

Answer 1

The answer is : b. An externality

The example of an Externality is air pollution from Car emission

The air pollution is not technically covered and intended by the car manufacturing company , but it harm a third party ( civilians) who do not involved in the car production