Glossary > Externalities
Food Movement Glossary

Externalities

Definition:

In economics, benefits or costs that are not included in the market price of goods or services. For example, the cost of natural resource depletion, pollution and other environmental and social factors are externalities that often are not factored into the market price of a product.

Example of Externalities:

As fossil fuel prices are being subsidized by the government; this allows products to be sold at a cheaper price in the US market. The subsidized price of fossil fuels hides the true cost of burning it, also called externalities.
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Did You Know?
It takes 24 to 26 hours for a hen to produce an egg and a hen may produce about 900 eggs in the course of her lifetime.