Which of the Following Statements Is False

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 will 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) A government with the power to tax should set a tax equal to the MEC when trying to change the market outcome into the efficient outcome.