Which of the Following Is True

question 32

Multiple Choice

Which of the following is true?

• A) Changes in personal costs and benefits will exert a predictable influence on the choices of people.
• B) If one individual gains from an economic activity, then someone else must lose.
• C) If a good is provided free to an individual by government, its production will not consume valuable scarce resources.
• D) If the intentions behind a policy are good, you can be assured that the outcome will be desirable.

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Definitions:

Drive

A psychological tension and physical arousal arising when there is a need that motivates the organism to act in order to fulfill the need and reduce the tension.

Tension

The state of being stretched tight or experiencing mental or emotional strain.

Intrinsically Motivated

Being driven by internal rewards, such as personal satisfaction or the joy of doing something for its own sake.

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, and praise, rather than for the sake of the activity itself.