Positive externalities and negative externalities.

Positive and negative externalities are economic concepts that describe the unintended spillover effects of economic activities on third parties who are not directly involved in the transaction. These externalities can have both beneficial and detrimental impacts on society and are an important consideration in economics and public policy.

1. Positive Externalities: Positive externalities occur when an economic activity generates benefits for third parties, in addition to the primary parties directly involved in the activity. These benefits are often not considered in the price or market transaction. Some common examples of positive externalities include:

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