The Atlantic City Expressway Is a Highway That Runs from Outside

question 357

Multiple Choice

The Atlantic City Expressway is a highway that runs from outside Philadelphia to Atlantic City, New Jersey. It is notoriously congested during the summer weekends when many people are driving to the beach about the same time. Because drivers who decide to take this road ignore the impact of their driving on overall traffic congestion the result is ________ cars on the road than the efficient number of cars and a deadweight loss is ________.

• A) fewer; not created
• B) fewer; created
• C) more; not created
• D) more; created

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Definitions:

Obligor

A contractual party who agrees to do something for the other party.

Donee Beneficiary

A donee beneficiary is a third party who benefits from a contract made between two other parties, where the intent is to gift the benefits of the contract to this third party.

Incidental Beneficiary

A third party who benefits from a contract incidentally but has no legal right to enforce the contract or claim damages.

Creditor Beneficiary

A third party who benefits from a contract in which the promisor agrees to pay the promisee’s debt.