An Externality Exists When

question 44

Multiple Choice

An externality exists when

• A) goods are sold in specific geographic locations.
• B) some of the benefits or costs associated with a good are borne by third parties.
• C) the government taxes a good.
• D) the government subsidizes a good.

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Definitions:

Navigation System

Technology or software designed to guide users or vehicles to a destination through the use of maps and GPS data.

Public Domain Software

Software that is not protected by copyright law and is freely available for use, modification, and distribution by anyone.

Copyright Restrictions

Legal limitations placed on the use of copyrighted materials, typically to protect the intellectual property rights of the creator.

Freeware

Software that is available for use at no cost or for an optional fee, but usually with limited functionality when compared to paid versions.