Which of the Following Statements Is Not Correct

question 342

Multiple Choice

Which of the following statements is not correct?

• A)Government policies may improve the market's allocation of resources when negative externalities are present.
• B)Government policies may improve the market's allocation of resources when positive externalities are present.
• C)A positive externality is an example of a market failure.
• D)Without government intervention, the market will tend to undersupply products that produce negative externalities.

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Definitions:

Machine Hours

A unit of measure representing the operational time of a machine, used in allocating costs based on how long machines are used in the production process.

Overhead

The indirect costs or expenses related to the operation of a business that are not directly tied to a specific product or service.

Job Order Cost Accounting

A method of accounting that accumulates costs for each job or project separately, often used in manufacturing or service industries.

Direct Labor Costs

Expenses associated with employees who directly contribute to the manufacturing or production of goods.