The basic explanation of economy
(1) It refers to the social material production, distribution, exchange and other activities such as the rapid development of our agricultural economy.
(2) It refers to living costs, family such as well-off or worse-off.
Economic externalities is also known as economic activity externlities. It is a key concept in economics, which refers to in the social and economic activities. An economic entity (a country, a company or an individual) directly affects the behavior of other relevant economic actors, but does not give payment accordingly or obtain appropriate compensation. Thus it appears externalities. Also it is called externality cost, externality effect or Spillover Effect.
Externalities may be positive, or it could be negative. Economic externalities are non-market impacts of the economic entities’(including vendors or individuals) economic activities on others and the society. It can be divided into positive externalities and negative externalities. Positive externalities are individual economic behaviors or activities that make others or the society benefit, and the beneficiaries are not required to pay the cost. Negative externalities are economic behaviors of individual or social activities that make others damaged, causing external diseconomies of the people do not be held responsible for costs.