Which of the Following Statements Is Not Correct

question 298

Multiple Choice

Which of the following statements is not correct?

• A) Private markets tend to over-produce products with negative externalities.
• B) Private markets tend to under-produce products with positive externalities.
• C) Private parties can bargain to efficient outcomes even in the presence of externalities.
• D) Private parties are usually more successful in achieving efficient outcomes than government policies.

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Definitions:

Scope of Management

The range of activities, responsibilities, and functions that managers are required to perform in guiding an organization towards its objectives.

Home-Country Standards

The regulatory and legal requirements or cultural norms from an individual's or corporation's country of origin that influence their operations abroad.

Host-Country Standards

The regulations, customs, and practices that prevail in the country where a multinational company operates, as opposed to its home country standards.

Classical Economic Model

A theory or approach in economics that emphasizes free markets, the role of competition, and the minimal involvement of government in the economy.