What Is an Open System

question 151

Multiple Choice

What is an open system?

• A) Any proprietary software licensed under exclusive legal right of the copyright holder.
• B) Any software whose source code is made available free for any third party to review and modify.
• C) Contains instructions written by a programmer specifying the actions to be performed by computer software.
• D) Nonproprietary hardware and software based on publicly known standards that allow third parties to create add-on products to plug into or interoperate.

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Definitions:

Transaction Costs

The costs that parties incur during the process of agreeing to and following through on a bargain.

Mutually Beneficial Agreement

An arrangement between parties where both or all receive benefits or advantages.

Coase Theorem

A legal and economic theory that states that if trade in an externality is possible and there are no transaction costs, bargaining will lead to an efficient outcome regardless of the initial allocation of property.

Taxes

Compulsory financial charges or levies collected by governments from businesses and individuals to fund public expenditures.