Final answer:
The service that exposes a property to a larger audience is the Multiple Listing Service (MLS), which provides benefits to sellers, brokers, and buyers. Externalities are effects of market exchanges on third parties not directly involved in the transaction.
Step-by-step explanation:
The name of the service that exposes a property to a larger audience of buyers and offers advantages to sellers, brokers, and buyers is called a Multiple Listing Service (MLS). This service allows real estate agents to exchange information about properties they are trying to sell, thereby increasing their exposure. For sellers, this means their property is seen by more potential buyers, which can lead to more competitive offers and a quicker sale. For buyers, the MLS provides a centralized location to search for properties that fit their needs, streamlining the buying process. Brokers benefit by being able to operate in a cooperative environment, enhancing both their buying and selling efforts.
An example of an externality in market transactions is when a concert producer decides to build an outdoor arena near a neighborhood. The music from the concerts may be considered a positive externality for some who enjoy it and a negative externality for others who prefer quiet. An externality is an effect of a market exchange on a third party who is outside the exchange, sometimes referred to as a spillover effect.