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Consider the Following Statements

question 139

Multiple Choice

Consider the following statements:
a.Car owners purchase more petrol from a petrol station that sells petrol at a lower price than other rival petrol 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?


Definitions:

Alienation

The feeling of being isolated and estranged from others, society, or oneself, often discussed in social, economic, and psychological contexts.

Manual Labor

Work that requires physical activity and is often characterized by hands-on tasks as opposed to mental or automated work.

Bureaucracy

An organizational structure characterized by hierarchical authority, a clear division of labor, explicit rules and procedures, and impersonality in personnel matters.

Socioemotional Relations

The aspect of human relations that involves emotional connection, empathy, and bonding among individuals within a social context.

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