Which of the Following Is Not Consistent with the Basic

question 155

Multiple Choice

Which of the following is not consistent with the basic postulate of economics that incentives matter?

• A) Farmers produce fewer bushels of wheat in response to an increase in the price of wheat.
• B) A politician votes against a proposal because most of his constituents oppose it.
• C) People drive less because of higher gas prices.
• D) People buy more milk in response to a reduction in the price of milk.

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Definitions:

Compliance

the act of conforming to or following rules, standards, or demands placed upon an individual by authority, society, or internal standards.

Direct Order

An explicit command given by one person to another, requiring immediate compliance.

GEN-X

Generation X, referring to the cohort of people born approximately between the mid-1960s and early 1980s.

Industrial Goods

Products and materials used in the production process of other goods, rather than goods purchased directly by consumers.