Which of the Following Is Not Correct

question 515

Multiple Choice

Which of the following is not correct?

• A)Markets allocate scarce resources with the forces of supply and demand.
• B)The equilibrium of supply and demand is typically an efficient allocation of resources.
• C)Governments can sometimes improve market outcomes.
• D)Externalities cannot be positive.

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Definitions:

Third-degree Price Discrimination

A pricing strategy where a firm charges different prices to different groups of consumers for the same product, based on their willingness to pay.

Tennis Lessons

Instruction or training sessions focused on improving a person's skills and understanding of the game of tennis, offered by professionals or experienced players.

Producer Surplus

The discrepancy between the amount sellers are prepared to take for a product or service and the actual payment they get.

Consumer Surplus

The difference between the maximum price a consumer is willing to pay for a good or service and the actual market price they pay.