Which of the Following Is True

question 22

Multiple Choice

Which of the following is true?

• A) Human choice is generally not influenced by changes in incentives.
• B) What is true for the individual must be true for the group as a whole.
• C) Using scarce resources to meet one need reduces our ability to meet needs in other areas.
• D) The economic way of thinking stresses that good intentions usually lead to sound economic policy.

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Definitions:

Public's Desire

The general or collective wants, needs, and preferences of the population, which can influence market demand and public policy.

Bank Panics

Situations in which a large number of bank customers withdraw their deposits simultaneously due to fears that the bank will become insolvent.

Deposits Reserve

Funds that banks are required to hold in reserve, either in their vaults or at a central bank, as a safeguard against bank runs and to ensure liquidity.

Greenbacks

A term historically used to refer to paper currency issued by the United States during the Civil War, recognized by their green coloring.