Apple Certification Exam 9L0-509

In some cases, there are costs or benefits imposed upon parties not involved in the economic exchange. 9L0 509 If someone decides to light and smoke a cigarette, for example, they incur costs, namely increased health risk and the cost of one cigarette. The smoker also gains
benefits: the enjoyment of the cigarette. Other individuals around the smoker may also suffer costs or enjoy benefits. Some people like the smell of cigarette smoke. Others may detest it.9L0 402 Everyone around the smoker is put at some higher risk of health problems. The individual making the economic choice, in this case, is the smoker. In this case, unlike the lemonade case, there are costs and benefits that are incurred on agents outside the economic transaction--costs and benefits "external" to the economic activity. These costs and benefits are known as externalities.