Which of the Following Statements Is False

question 26

Multiple Choice

Which of the following statements is false?

• A) Internalizing external costs would make pollution prevention more profitable.
• B) Internalizing external costs makes consumers more aware of the true cost of goods and services.
• C) Real market prices would not always be cheaper if external costs were internalized.
• D) Fuel-inefficient cars would still have competitive prices if their external costs were internalized.
• E) Many costs and benefits cannot be labeled with a price tag.

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Definitions:

Ask Price

The minimum price a seller is willing to accept for an asset or security.

Sell

The act of transferring ownership of a security or asset from a seller to a buyer in exchange for cash or other forms of payment.

Security

A financial instrument representing an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Dark Pools

Private financial forums or exchanges for trading securities not accessible by the investing public, often used by large institutions to avoid impacting the market with large orders.