Which of the Following Statements Is False

question 76

Multiple Choice

Which of the following statements is false?

• A) In the case of a negative externality,the market equilibrium is inefficient.
• B) In the case of a negative externality,when a tax is set equal to the marginal external costs (MEC)efficiency can be achieved.
• C) In the case of a negative externality,when a tax is set that is greater than the marginal external costs (MEC)inefficiency will result.
• D) In the case of a positive externality,when a tax is set equal to the marginal external benefits (MEB)efficiency can be achieved.

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Definitions:

Panic Disorder

A psychiatric disorder characterized by unexpected and repeated episodes of intense fear accompanied by physical symptoms that may include chest pain, heart palpitations, shortness of breath, dizziness, or abdominal distress.

Somatoform Disorder

A mental disorder characterized by physical symptoms that have no identifiable physical cause, often linked to psychological factors.

Hypochondria

An excessive preoccupation with and worry about having a serious illness, despite medical reassurance and lack of diagnostic evidence.

Emergency Room

A medical treatment facility specializing in emergency medicine, the acute care of patients who present without prior appointment.