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:

Habit Loop

A conceptual framework that captures the cycle of cue, routine, and reward, which helps in understanding how habits are formed and maintained in human behavior.

Self-leadership Habit

A practice of personal self-regulation and goal-setting to improve one's effectiveness and productivity.

Improvisation

The art of spontaneously creating something without preparation.

Self-correcting Feedback

A mechanism or process that automatically adjusts or corrects the direction of a system or behavior based on its performance or outcome.