Which of the Following Statements Is INCORRECT

question 20

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:

Opinion Leaders

Influential individuals within a community or social group who have the power to affect others' attitudes, beliefs, and behaviors regarding various topics.

Interpersonal Gossip

The act of sharing information, rumors, or speculations about others within a social network, which can influence perceptions and social dynamics.

Consumer Socialization

The process by which young individuals acquire skills, knowledge, and attitudes relevant to their functioning as consumers in the marketplace.

Opinion Formation

The process by which individuals develop their viewpoints and beliefs about a topic, often influenced by factors like media, personal experiences, and social networks.