Which of the Following Statements Is Not Correct

question 4

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 all types of market failures.

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Definitions:

Clay

A natural, earthy material known for its plasticity when wet, used in ceramics and as a key component of soil.

Vascular Plants

Plants that have specialized structures for the transport of water and nutrients, including xylem and phloem.

Silurian Period

A geologic period and system that extends from about 443.8 million to 419.2 million years ago, noted for significant biological developments including the appearance of the first clearly identifiable land plants.

Air-breathing Animals

Organisms that intake oxygen from the air to the lungs or other special respiratory organs to sustain life.