The Difference Between the Costs (Or Benefits)created by Both Technological

question 25

Multiple Choice

The difference between the costs (or benefits) created by both technological and pecuniary externalities is that in both cases costs are imposed on _____,but for _____ they are external to the market while _____ are allocated within the market.

• A)parties to the transaction;technological externalities;pecuniary externalities
• B)parties to the transaction;pecuniary externalities;technological externalities
• C)third parties;technological externalities;pecuniary externalities
• D)third parties;pecuniary externalities;technological externalities

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Definitions:

Exclude

To eliminate or leave out from consideration or a group.

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be used by everyone and one person's use does not reduce availability to others.

Market Failure

A scenario where the free market fails to allocate resources efficiently, resulting in negative impacts on social welfare.

Pareto Optimality

The scenario in which resources are allocated in a manner that prohibits enhancing one individual's situation without negatively impacting another's.