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:

Economic Concerns

Issues related to the financial health and stability of an economy, including inflation, unemployment, and GDP growth.

Housing

The provision of shelter or accommodation, including the structures and related policies that determine how residential spaces are built, allocated, and governed.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect exists in the case under investigation.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, a threshold for determining statistical significance.