The Basic Postulate of Economics Indicates That Changes in Incentives

question 202

Multiple Choice

The basic postulate of economics indicates that changes in incentives influence

• A) the actions of producers but not consumers.
• B) the actions of consumers but not producers.
• C) the choices of individuals only when they buy and sell goods in the marketplace.
• D) the choices of individuals with regard to a wide range of activities, including those generally perceived as social or political.

---

Definitions:

Émile Durkheim

A French sociologist, significant for his contributions to the establishment of sociology as a recognized academic discipline and for his theories on social cohesion and anomie.

Gustave Le Bon

A French social psychologist best known for his work on crowd psychology, arguing that crowds transform individual psychology, leading to uncharacteristic behaviors.

Modern Life

Describes contemporary human existence, characterized by advanced technology, urbanization, and complex social structures.

Guillaume Apollinaire

A French poet, playwright, and art critic who was a key figure in the early 20th-century avant-garde, known for his technical innovation and themes of love and modernity.