Which of the Following Statements Is False

question 2

Multiple Choice

Which of the following statements is false?

• A)If a negative externality exists, the market output is greater than the socially optimal output.
• B)If a positive externality exists, the market output is less than the socially optimal output.
• C)If there are no external costs or benefits, then it follows that marginal private costs equal marginal social costs and marginal private benefits equal marginal social benefits.
• D)When a positive externality exists, marginal social benefits are greater than marginal private benefits.
• E)none of the above

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Definitions:

Substantive Due Process

A principle allowing courts to protect certain fundamental rights from government interference, even if procedural protections are not violated.

Constitutional Rights

Rights afforded to individuals under the constitution of a country, guaranteeing the protection of personal freedoms and rights.

Free Speech

Free Speech is the right to express one's opinions and ideas without fear of government censorship or punishment.

Commerce Clause

A provision in the United States Constitution that grants Congress the power to regulate trade between states, with foreign nations, and with Indian tribes.