Which of the Following Is False

question 68

Multiple Choice

Which of the following is false?

• A) In the case of a negative externality, the market equilibrium is inefficient.
• B) In the case of a negative externality, when a tax is set equal to the marginal external costs (MEC) efficiency can be achieved.
• C) In the case of a negative externality, when a tax is set that is greater than the marginal external costs (MEC) inefficiency will result.
• D) In the case of a positive externality, when a tax is set equal to the marginal external benefits (MEB) efficiency can be achieved.

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Definitions:

Mean

The mathematical mean of a collection of numbers, obtained by summing them up and then dividing by the total count of the numbers.

Mean Salary

The average amount of income earned by employees in a particular job, sector, or region, calculated by summing all salaries and dividing by the number of employees.

Skewed

A term describing asymmetry in the probability distribution of a real-valued random variable, indicating a deviation from the normal distribution.

Median

The middle value in a data set, which effectively divides the dataset into two halves, with one half having values above the median and the other half below.