Which of the Following Statements Is False

question 56

Multiple Choice

Which of the following statements is false?

• A) A government with the power to tax can solve the free rider problem.
• B) A government with the power to tax can set a tax greater than the MEC when trying to change the market outcome into the efficient outcome.
• C) A government with the power to subsidize can set a subsidy greater than the MEB when trying to change the market outcome into the efficient outcome.
• D) Government can remove individuals from a prisoner's dilemma setting by changing the payoffs in the payoff matrix.
• E) none of the above

---

Definitions:

Path-goal Leadership

A theory that suggests leaders should adjust their style to fit the developmental and psychological needs of their followers to achieve the desired goal.

Follower Characteristics

The traits or qualities of individuals who are led by others, which can influence the leadership process.

Work-setting Characteristics

Features or aspects of a workplace environment that affect employees' behavior, performance, and job satisfaction.

Directive Leadership

A leadership style where the leader instructs followers on what to do and how to do it, setting clear guidelines, rules, and expectations.