Consider the Following Statements

question 22

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?

• A)b only
• B)c only
• C)a and b
• D)a, b and c

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Definitions:

Regression

In psychoanalytic theory, retreating to an earlier, more immature stage of psychosexual development, usually because of stress but sometimes in the service of play and creativity.

Psychic Energy

A concept in psychoanalytic theory referring to the energy derived from instinctual drives and how it is focused or invested into different parts of the personality.

Psychological Development

The process of growth and change in psychological abilities, traits, and behavior patterns throughout a person's life.

Psychosocial Relationships

Interactions between individuals and their social environment, impacting psychological development and well-being.