The side effect of an action that increases the well-being of others is called8888ah augmentation.an elasticity.a passive benefit.a positive externality.

Positive externality is a beneficial side effect of an action on others.

Answered: The side effect of an action that…

The side effect of an action that increases the well-being of others is called ah augmentation. an elasticity. a passive benefit. a positive externality.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter17: Market Failure: Externalities, Public Goods, And Asymmetric Information

Section17.2: Internalizing Externalities

Problem 4ST

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Concept explainers

Market Failure Analysis

To understand Market failure, we need to first understand welfare economics. An Italian economist, Vilfredo Pareto stated that allocation of resources in an efficient manner such that an economic change, which harms no one and makes someone better off, indicates an increase in social welfare. It is also called Pareto Optimality, where resources cannot further be reallocated without harming one. This does not apply to those economic changes, which harm some and benefit others. social welfare increases if the utility of any of its members' increases and none decrease in the economy.

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The side effect of an action that increases the well-being of others is called
8888
ah augmentation.
an elasticity.
a passive benefit.
a positive externality.

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