Recall the Application About the Increase in Purchases of Hybrid

question 84

Multiple Choice

Recall the Application about the increase in purchases of hybrid vehicles to answer the following question(s) .
-According to the Application, one factor which was responsible for roughly one-fifth of hybrid vehicles purchased in 2007 was a federal subsidy of up to $3,400 per hybrid vehicle. The increase in sales due to this subsidy is an example of which element of the economic way of thinking?

• A) responding to incentives
• B) thinking at the margin
• C) isolating variables
• D) using assumptions to simplify

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Definitions:

Generalization

The tendency to apply what is learned in one situation to other similar situations, often considered a fundamental learning process.

Spontaneous Recovery

The reappearance of a previously extinguished response after a period of non-exposure to the conditioned stimulus.

Observable Behavior

Actions or reactions of an individual that can be seen and measured by others.

Cognitive Processes

Mental activities involved in acquiring, storing, and utilizing knowledge, including perception, memory, language, and decision-making.