The Economic Way of Thinking Stresses That

question 38

Multiple Choice

The economic way of thinking stresses that

• A) changes in personal costs and benefits generally fail to exert much impact on behavior.
• B) incentives matter--individuals respond in predictable ways to changes in personal costs and benefits.
• C) if one individual gains from an economic activity, then someone else must lose and in the same proportion.
• D) if a good is provided by the government, its production will not consume valuable scarce resources.

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Definitions:

Personality

The combination of characteristics or qualities that form an individual's distinctive character, encompassing attitudes, behaviors, and emotional patterns.

Behavioral Consistency

The tendency of an individual to exhibit the same behaviors across different situations and over time.

Individual's Behavior

Actions or reactions of a person in response to external or internal stimuli.

Lab Observations

The process of watching subjects in a controlled environment to gather data, often used in experimental studies.