Which of the Following Statements Is Not Correct

question 118

Multiple Choice

Which of the following statements is not correct?

• A) An invisible hand leads buyers and sellers to an equilibrium that maximizes total surplus.
• B) Market power can cause markets to be inefficient.
• C) Externalities can cause markets to be inefficient.
• D) The invisible hand can remedy most if not all types of market failures.

---

Definitions:

Coniferous Forests

Forest ecosystems dominated by cone-bearing trees such as pines, firs, and spruces, primarily found in cooler climates.

Higher Latitudes

Regions of the Earth closer to the poles, characterized by colder temperatures and, in many cases, unique ecological conditions.

Deserts

Extremely dry areas of land with sparse vegetation, characterized by receiving less than 25 centimeters (10 inches) of precipitation per year.

Earth's Land Surface

The solid surface layer of the Earth, as opposed to the ocean or sky; includes continents and islands.