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Frank Owns a Collection of Rare Musical Instruments

question 3

Multiple Choice

Frank owns a collection of rare musical instruments. His ownership includes the rights to use, sell, or give away the property, On Frank's death, his interest in the collection will pass to

Definitions:

External Effects

In economics, externalities or external effects occur when the actions of individuals or firms have positive or negative impacts on third parties not directly involved in the transaction.

Demand

Refers to the quantity of a good or service that consumers are willing and able to purchase at different prices at a given time.

Supply

The total amount of a specific good or service that is available to consumers at a given price level and over a specific period.

Positive Externalities

Benefits received by third parties who are not directly involved in a transaction or activity, leading to potentially under-produced goods or services in a free market.