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Externalities and Impacts on Resource Allocation

Negative externality

Negative externality

Air pollution from vehicles is an example of a negative externality. It affects other than those who drive the vehicle and those who sell the gas.

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    Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:

    "Diesel-smoke."
    http://en.wikipedia.org/wiki/File:Diesel-smoke.jpg Wikipedia Public domain.

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