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Externality

The side effect on an individual or entity due to the actions of another individual or entity. For example, the production of energy in a nuclear power Plant benefits the owners of the power plant, but creates externalities in the form of radioactive waste for the environment and ITS inhabitants.

Related Terms: 8 Action, Benefit, Clear, ITS, NVI, Owe, Own, Plant
Other Related Pages: Category: Economy Starting With: E
Additional Related Terms: 401(k) plan, 403(b) plan, 457 plan, Active asset, Allowance for depreciation, Active account, Accrual of discount, Active management, Amortization of premium, At par