Various New Cars Are Sold with Sensors That Automatically Turn

question 18

Essay

Various new cars are sold with sensors that automatically turn on the headlights at night or during low light conditions. Would these sensors create a positive externality or a negative externality? How?

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Definitions:

Inflationary Economies

Economies experiencing a sustained increase in the general price level of goods and services over a period of time.

Political Colonialism

The practice or policy of controlling a country or area by establishing colonies there, often involving economic exploitation and cultural domination.

Market Economy

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.

National GAAP

Generally Accepted Accounting Principles specific to a country, which consist of a set of accounting standards and practices that are followed within that nation.