Consider the Following Statements

question 141

Multiple Choice

Consider the following statements:
A.Car owners purchase more gasoline from a gas station that sells gasoline at a lower price than other rival gas stations in the area.
B.Banks do not take steps to increase security since they believe it is less costly to allow some bank robberies than to install expensive security monitoring equipment.
C.Firms produce more of a particular DVD when its selling price rises.
Which of the above statements demonstrates that economic agents respond to incentives?

• A)a only
• B)b only
• C)c only
• D)a and b
• E)a, b, and c

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Definitions:

Entity Theorists

Those who believe that traits are fixed, stable things (entities) and thus people should not be expected to change.

Incremental Theorists

Those who believe that traits are subject to change and improvement.

Learned Helplessness

Belief that one’s actions will not bring about desired outcomes, leading one to give up and quit trying.

Encounter

A meeting or interaction between individuals, which can range from casual or brief to significant.