Which of the Following Principles Is Not One of the Four

question 239

Multiple Choice

Which of the following principles is not one of the four principles of individual decisionmaking?

• A) People face tradeoffs.
• B) Trade can make everyone better off.
• C) People respond to incentives.
• D) Rational people think at the margin.

---

Definitions:

Price Controls

Government-imposed limits on the prices charged for goods and services, typically to control inflation or to ensure affordability.

Rent Control

Government-set price ceiling on rent.

Usury Law

Legislation regulating the maximum interest rate that can be charged on a loan, to protect consumers from excessively high rates.

Minimum Wage Law

Legislation that sets the lowest hourly wage rate that an employer can legally pay its workers.