Which of the Following Statements Is Not Correct

question 261

Multiple Choice

Which of the following statements is not correct?

• A)A patent is a way for the government to encourage the production of a good with technology spillovers.
• B)A tax is a way for the government to reduce the production of a good with a negative externality.
• C)A tax that accurately reflects social costs produces the socially optimal outcome.
• D)Government policies cannot improve upon private market outcomes.

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Definitions:

Technological Advance

The development of new technologies or the improvement of existing ones, which can lead to increased efficiency, productivity, and economic growth.

Oligopolistic Firms

Companies that operate in an oligopoly, a market structure characterized by a small number of firms controlling the majority of the market share.

Government Funding

Financial resources provided by the government for specific projects, programs, or sectors, often aimed at achieving public policy goals.

Four-Firm Concentration Ratios

A measure indicating the combined market share of the four largest firms in an industry, used to assess the degree of market competition.