Which of the Following Statements Is Not Correct

question 118

Multiple Choice

Which of the following statements is not correct?

• A) An invisible hand leads buyers and sellers to an equilibrium that maximizes total surplus.
• B) Market power can cause markets to be inefficient.
• C) Externalities can cause markets to be inefficient.
• D) The invisible hand can remedy most if not all types of market failures.

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Definitions:

Investing Activities

Investing activities are transactions involving the purchase and sale of long-term assets and other investments not considered as cash equivalents.

Net Cash

The difference between a company's total cash inflows and outflows.

Operating Activities

Day-to-day actions that relate to producing goods, providing services, and selling merchandise to customers, which are reflected in a company's cash flows.

Net Cash

Represents the amount of cash remaining after all cash outflows are subtracted from total cash inflows over a specific period of time.