An Action Creates an Externality If It

question 9

Multiple Choice

An action creates an externality if it:

• A) does not affect someone with whom the decision-maker has not engaged in a related market transaction.
• B) affects someone with whom the decision-maker has not engaged in a related market transaction.
• C) affects only those individuals engaged in the market transaction.
• D) affects someone with whom the decision-maker has not engaged in a related market transaction and affects only those individuals engaged in the market transaction.

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Definitions:

Information Systems

Integrated sets of components for collecting, storing, and processing data, and for delivering information, knowledge, and digital products.

Information Technology

The employment of computers, storage systems, networking components, and additional physical devices, infrastructure, and methodologies to generate, process, secure, store, and share various kinds of digital data.

Right-To-Repair Legislation

Laws designed to require manufacturers to provide consumers and independent repair shops access to repair information, tools, and parts for their products.

Right Information

Accurate and relevant data that is accessible at the correct time for decision-making or problem-solving.