Which of the Following Is Often Referred to as the Basic

question 158

Multiple Choice

Which of the following is often referred to as the basic postulate of economics?

• A) Individuals act only out of selfish motives.
• B) Incentives matter--individuals respond in predictable ways to changes in personal costs and benefits.
• C) The accuracy of the assumptions is the best test of an economic theory.
• D) The value of a good is objective; it is equal to the cost of producing the good.

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Definitions:

Farmers

Individuals or entities engaged in the act of agriculture, growing crops and/or raising animals.

Unsecured Debts

Debts that are not backed by an asset or collateral, increasing the risk for lenders if the borrower defaults.

Chapter 7

A chapter of the U.S. Bankruptcy Code that involves the liquidation of a debtor's assets to pay off creditors.

Three-Year Period

A specific duration of time lasting exactly three years.