A Third Person Dealing with the Agent of a Disclosed

question 22

True/False

A third person dealing with the agent of a disclosed principal ordinarily intends to make a contract with the principal, not the agent.

---

Definitions:

Free Rider Problem

A situation where individuals consume a public good without contributing to its cost, benefitting from others' contributions.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by everyone and one person's use does not reduce availability to others.

Public Goods

Goods or services that are available for all to consume, regardless of payment, such as public parks or national defense.

Economic Efficiency

A situation in which every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.