Stark Enters into a Contract with a Contractor to Build

question 61

Multiple Choice

Stark enters into a contract with a contractor to build a large shopping mall in River City.Donner will benefit from this contract since his restaurant is adjacent to the planned mall.Donner in this instance is a(n) :

• A)implied beneficiary.
• B)partial beneficiary.
• C)donee beneficiary.
• D)incidental beneficiary.

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Definitions:

Consumer Tastes

Preferences or desires of consumers regarding certain products or services, which can influence buying behavior and market trends.

Externalities

The cost or benefit that affects a party who did not choose to incur that cost or benefit, affecting third parties outside the transaction.

Market for Product X

The demand and supply conditions, participants, and interactions specific to a particular product, designated as "Product X."

Overallocation of Resources

A situation where too many resources are devoted to a particular area of the economy, potentially leading to inefficiencies and waste.