According to a Recent Study of Chilean Bus Drivers,drivers Who

question 195

Multiple Choice

According to a recent study of Chilean bus drivers,drivers who are paid by the number of passengers they transport have higher productivity than drivers who are paid by the hour.This result is an example of which principle of economics?

• A) People face tradeoffs.
• B) The cost of something is what you give up to get it.
• C) Rational people think at the margin.
• D) People respond to incentives.

---

Definitions:

Marginal Benefit

The enhanced utility or pleasure that comes from acquiring or making an additional unit of a good or service.

Social Regulation

Laws and rules designed to correct behaviors and practices that affect public welfare, including environmental protection, health, and safety standards.

Antitrust Policy

A set of laws and regulations designed to promote competition and prevent monopolies, ensuring a fair and competitive market landscape.

Social Regulation

Regulatory policies aimed at improving societal welfare by correcting market failures, protecting the environment, and ensuring consumer safety.