Which of the Following Statements Is Not True

question 4

Multiple Choice

Which of the following statements is not true?

• A) If marginal social cost and marginal private cost are the same, any externality that exists will be positive.
• B) If marginal externality costs are not zero, externalities exist.
• C) An expansion of property rights to include air quality and scenic beauty would bring some private markets close to a socially optimal equilibrium.
• D) The existence of pollution as the byproduct of a production or exchange process indicates a market failure.
• E) When municipal water supplies have heavy concentration of agricultural chemicals, it is probable that agricultural output from the area is produced in quantities greater than the socially optimal level.

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Definitions:

No Logo

A critique of brand dominance and corporate influence on society, emphasizing freedom from branded identities.

Critical Approach

A method of analysis emphasizing questioning assumptions, evaluating evidence, and considering different viewpoints.

Government Intervention

Actions taken by a government to influence or regulate various activities, markets, or economic processes.

Ethical Wicked Problems

Complex ethical dilemmas that are difficult to solve due to incomplete, contradictory, and changing requirements.