Examlex

Solved

Consider the Following Statements: A

question 46

Multiple Choice

Consider the following statements: a.Soda drinkers purchase more soda from a grocery store that sells soda at a lower price than other rival grocery stores in the area.
B.Homeowners do not take steps to increase security even though they believe it is more costly to allow burglaries than to install security monitoring equipment.
C.Manufacturers produce less of a particular cell phone when its selling price rises.
Which of the above statements demonstrates that economic agents respond to incentives?


Definitions:

Handscroll

A long narrow piece of paper or silk, used in East Asian art for painting and calligraphy, viewed by unrolling horizontally.

Negative Income Tax

A system where individuals earning below a certain amount receive supplemental pay from the government instead of paying taxes.

Tax Liability

The total amount of taxes an individual or organization owes to the tax authorities.

Income Subsidy

Financial assistance programs provided by governments or institutions to individuals or groups to help supplement their income, typically aimed at the needy or to promote certain economic activities.

Related Questions