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swat32
3 years ago
14

The term ____________________ refers to a market exchange that affects a third party who is outside or external to the exchange.

Group of answer choices
Business
1 answer:
Flauer [41]3 years ago
5 0

Answer: B. spillover

Explanation:

A Spillover is used to refer to the effects of an Externality which is what happens when a market exchange leads to effects on a third party that was not party to a transaction between the contracting parties.

The activities that result from the transaction spillover to the third party and can be either negative or positive. A negative spillover would be countries in Africa getting harsher global warming effects due to companies in china polluting the atmosphere.

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