Greco Promises to Buy Illegal Copies of CDs and DVDs

question 64

Multiple Choice

Greco promises to buy illegal copies of CDs and DVDs from Fava,who promises to deliver on April 15.These promises are most likely

• A)enforceable.
• B)valid.
• C)void.
• D)voidable.

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Definitions:

Subsidizing Production

Financial assistance provided by the government or other institutions to reduce the cost of producing goods or services and encourage increased output.

Negative Externalities

A situation where a third party suffers from a decision or action made by others, typically not reflected in the market price.

Positive Externalities

Benefits enjoyed by third-party individuals or the society at large, which result from an economic activity but are not reflected in the market prices.

Negative Externality

An external effect of a product or activity that imposes a negative impact on a third party or the environment.