Economists Believe That Individuals Respond in a Predictable Way to Changes

question 82

Multiple Choice

Economists believe that individuals respond in a predictable way to changes in costs and benefits.The term that best describes this belief is

• A)opportunity cost
• B)demand
• C)supply
• D)scarcity
• E)rational behavior

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Definitions:

Government Enforcement

Refers to the actions and measures taken by government authorities to ensure compliance with laws, regulations, and policies.

Private-Sector Coercion

The exertion of pressure or compulsion on individuals or entities by private organizations or businesses, rather than by governments.

Market Economy

An economic system in which production and prices are determined by unrestricted competition between privately owned businesses, without substantial government intervention in the form of price controls.

Economic Efficiency

A situation where all resources are optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.