Consumer Theory Does Not Specify Which Goods People Consider Economic

question 50

Multiple Choice

Consumer theory does not specify which goods people consider economic "goods" and which economic "bads".It nonetheless remains useful because:

• A)people are all different.
• B)some people don't consider anything an economic "bad."
• C)people reveal their preferences through their consumption decisions.
• D)consumers have identical preferences.

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Definitions:

Inducements

Incentives or rewards offered to motivate specific actions or behaviors from individuals or groups.

Self-serving Bias

A cognitive bias where individuals attribute positive outcomes to their own actions and negative outcomes to external factors.

Low Productivity

Reduced effectiveness in producing goods or services, often measured by output per labor hour.

Laziness

A lack of willingness or motivation to work or exert effort; often perceived as a negative trait resulting in reduced productivity.