Millionaire Mode

Externalities and Market Failures

Question 1 of 14

What is an externality?

  1. A cost or benefit that arises from the production or consumption of a good or service that is not reflected in the market price.
  2. A cost or benefit that is imposed on a third party by an economic activity.
  3. A cost or benefit that is incurred by a producer or consumer as a result of their own economic activity.
  4. A cost or benefit that is shared equally by all members of society.

Prize Money

15₹7 Crores
14₹1 Crore
13₹50,00,000
12₹25,00,000
11₹12,50,000
10₹6,40,000
9₹3,20,000
8₹1,60,000
7₹80,000
6₹40,000
5₹20,000
4₹10,000
3₹5,000
2₹2,000
1₹1,000