Which of the following statements is not correct?
A)A patent is a way for the government to encourage the production of a good with technology spillovers.
B)A tax is a way for the government to reduce the production of a good with a negative externality.
C)A tax that accurately reflects external costs produces the socially optimal outcome.
D)Government policies cannot improve upon private market outcomes.

Question

Quizplus · Accepted Answer

Government policies, such as patents and taxes, can improve upon private market outcomes by addressing issues like technology spillovers and negative externalities, leading to more socially optimal outcomes.

Which of the Following Statements Is Not Correct