Question

Economists generally call the effect of an agreement on others that is not taken into account by the parties making the agreement A. an externality B. welfare loss C. Pareto optimality D. excess burden

Answer 1

Economists generally call the effect of an agreement on others that is not taken into account by the parties making the agreement "A. an externality". These externalities can be either negative or positive, but they always have repercussions on society as a whole.