The Economic Way of Thinking Stresses That

question 216

Multiple Choice

The economic way of thinking stresses that

• A) changes in personal costs and benefits generally do not influence human behavior.
• B) incentives matter--when an option becomes less costly, people will be more likely to choose it.
• C) if one individual gains from an economic activity, then someone else must lose.
• D) goods provided by government do not consume valuable scarce resources since government activity is not part of the market economy.

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Definitions:

Kelley's Covariation

A theory proposed by Harold Kelley that suggests an individual determines the cause of an event by considering whether the observed behavior covaries or changes across time, place, or actors.

Attribution Theory

A psychological theory focused on how individuals interpret and understand their own and others' behaviors and actions by attributing them to internal or external causes.

Permanence

The state or quality of lasting or remaining unchanged indefinitely.

Attribution Theory

A psychological theory that examines how individuals infer the causes of their own and others' behaviors and events.