Which One of the Following Statements Is Incorrect

question 4

Multiple Choice

Which one of the following statements is incorrect?

• A)Entrepreneur wealth has been associated with strong economic growth.
• B)Inherited wealth has been shown to have a negative effect on economic growth.
• C)Familism refers to strong family ties and the possible limitations these may cause for firm growth and the emergence of firms in industries that are not typically associated with family ownership.
• D)All of the above statements are incorrect.

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Definitions:

Government Intervention

Actions taken by a government to affect or interfere with market activities or uphold laws for economic or social outcomes.

Markets Fail

Occurs when a market economy does not efficiently allocate resources, leading to outcomes like monopolies, public goods issues, or externalities.

Efficient Allocation

The distribution of resources in a way that maximizes the net benefits to society or the economy.

Efficiency

A measure of how well resources are used to achieve a goal, minimizing waste.