Externality theory is the basic theory of the following branch of Economics :

Options

A. Environomics
B. Fiscal Economics
C. International Economics
D. Macro Economics

Answer

A

Explanation

In economics, an externality is a cost or benefit which results from an activity or transaction and which affects an otherwise uninvolved party who did not choose to incur that cost or benefit. Environmental pollution is a classic case of an externality. Externality theory forms the basic theory of environmental economics.