Which of the Following Statements Is INCORRECT

question 63

Multiple Choice

Which of the following statements is INCORRECT?

• A) When external benefits exist in a market, Qmarket < Qefficient.
• B) When external benefits exist in a market, social surplus is maximized when social benefits equal the marginal costs of production.
• C) When external costs exist in a market, Qmarket > Qefficient.
• D) Through taxation, government action can result in Qmarket = Qefficient.

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Definitions:

Model Airplanes

Miniature replicas of airplanes designed either for collecting or as a hobby to assemble, often used in the context of model building or flying.

Valued

Appreciated or considered of high worth, especially in a monetary or material sense.

Housing Prices

The amount of money required to purchase residential properties, which can fluctuate based on supply, demand, and economic conditions.