Which of the Following Is Not Correct

question 2

Multiple Choice

Which of the following is not correct?

• A)Market power can cause markets to be inefficient.
• B)When the decisions of buyers and sellers affect nonparticipants,markets may be inefficient.
• C)The tools of welfare economics cannot help economists when markets are inefficient.
• D)Externalities can cause markets to be inefficient.

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Definitions:

Potential Investor

An individual or entity that is considering investing capital in a project, company, or security.

Stock Acquisition

The process of purchasing shares of a company, thereby obtaining a portion of its ownership.

Voting Control

The power to influence or determine outcomes within an organization or governing body through the right to vote.

Commerce Clause

A provision in the U.S. Constitution that grants Congress the power to regulate trade between states, with foreign nations, and among Indian tribes.