Which of the Following Statements Is False

question 2

Multiple Choice

Which of the following statements is false?

• A)If a negative externality exists, the market output is greater than the socially optimal output.
• B)If a positive externality exists, the market output is less than the socially optimal output.
• C)If there are no external costs or benefits, then it follows that marginal private costs equal marginal social costs and marginal private benefits equal marginal social benefits.
• D)When a positive externality exists, marginal social benefits are greater than marginal private benefits.
• E)none of the above

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Definitions:

Anorexia Nervosa

An eating disorder characterized by an intense fear of gaining weight and a distorted body image, leading to restricted food intake and excessive weight loss.

Food Intake

The amount of food consumed by an individual or organism, typically measured for nutritional analysis or diet planning.

Bulimia Nervosa

A disorder marked by frequent eating binges that are followed by forced vomiting or other extreme compensatory behaviors to avoid gaining weight. Also known as binge-purge syndrome.

Personality Disorder

A type of mental disorder characterized by enduring patterns of thought, feeling, and behavior that deviate significantly from the expectations of one’s culture and lead to distress or impaired functioning.