Which of the Following Statements Is Not Correct

question 178

Multiple Choice

Which of the following statements is not correct?

• A)Patents help internalize the externalities associated with technological advances.
• B)Economists typically prefer regulations to corrective taxes because regulations provide more incentives for firms to seek continued reductions in pollution.
• C)Allowing firms to trade pollution permits will lower the total cost of reducing pollution.
• D)A big impediment to implementing the Coase theorem in many cases is high transactions costs.

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Definitions:

Nonoperating Income

Income that a company makes from activities not related to its core business operations, such as investment income or profits from the sale of assets.

Operating Expenses

These are the costs associated with the day-to-day operations of a business, excluding the cost of goods sold.

Income from Operations

Revenue generated from a company's primary business activities, minus operating expenses like wages and cost of goods sold.

Net Sales

Sales income a company retains after accounting for returns, allowances for damaged or missing merchandise, and discounts.