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Economics
Externalities
Costs or benefits of a transaction that affect people who were not part of the decision.
Economists say markets fail when externalities exist because prices don't reflect true costs or benefits. Governments use taxes, subsidies, or regulations to fix negative externalities and encourage positive ones.
It's when your neighbour's loud party ruins your sleep even though you weren't invited.
Real world: A factory polluting a river creates a negative externality — the people downstream suffer even though they didn't buy the factory's products. A beekeeper's bees pollinating nearby farms create a positive externality.
💡 Externalities are the hidden side effects that markets often ignore.