Which of the Following Statements Is Not Correct

question 342

Multiple Choice

Which of the following statements is not correct?

• A)Government policies may improve the market's allocation of resources when negative externalities are present.
• B)Government policies may improve the market's allocation of resources when positive externalities are present.
• C)A positive externality is an example of a market failure.
• D)Without government intervention, the market will tend to undersupply products that produce negative externalities.

---

Definitions:

Production Rate

The speed at which goods are manufactured or produced in a given period.

Production Possibility Frontier

A chart that outlines the utmost production possibilities for two types of goods, contingent upon a selection of resources and other conditions.

Technology Improvement

Enhancements or innovations in technology that increase productivity, efficiency, and product quality in various sectors.

Economy

The system of production, consumption, and distribution of goods and services in a particular geographic region or country.