Question

what are external benefits or positive externalities?
benefits captured solely by individuals who use the product.
beneficial spillovers to third parties who did not purchase the good or service.
costs incurred by third parties due to production activities.
the private benefits earned by firms or inventors.
spillovers leading to increased production costs.

question 2
1 pts
who is a free rider?
a company that produces goods for a nonrivalrous market.
someone who wants others to pay for a public good but plans to use it themselves.
a third party who benefits from positive externalities.
an individual who pays for a good but does not consume it.
a person who incurs external costs due to public goods.

question 3
1 pts
what is intellectual property?
the costs firms incur to produce new inventions.
the ownership rights to nonexcludable goods.
rights allowing public access to inventions and discoveries.
laws protecting patents, trademarks, copyrights, and trade secrets.
the legal cost of preventing positive externalities.

Explanation:

• Question 1: External benefits or positive externalities occur when a third - party who did not purchase a good or service benefits from it. For example, if a person plants a beautiful garden in front of their house, neighbors who did not pay for the garden enjoy the aesthetic benefit.
• Question 2: A free rider is someone who wants others to pay for a public good but plans to use it themselves. Public goods are non - excludable (it's hard to stop people from using them) and non - rivalrous (one person's use doesn't reduce availability for others). So, a person can “free ride” on the efforts of others who pay for the public good.
• Question 3: Intellectual property refers to laws protecting patents (for inventions), trademarks (for brand identities), copyrights (for creative works like books and music), and trade secrets (confidential business information). These laws give the creators or owners certain exclusive rights over their intangible assets.

Answer:

• Question 1: Beneficial spillovers to third parties who did not purchase the good or service.
• Question 2: Someone who wants others to pay for a public good but plans to use it themselves.
• Question 3: Laws protecting patents, trademarks, copyrights, and trade secrets.