Words / E / Business

externality

noun

C2CEFR level
78/100Rarity: rare
TechnicalRegister

A cost or benefit arising from an economic activity that falls on third parties not involved in the transaction.

Pollution is the classic negative externality, imposing costs on people who never bought the product.

Similar: spillover

Topic: Economics in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More business words: Economics