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Consider the Following Statements

question 115

Multiple Choice

Consider the following statements:
a. Consumers buy more MP3 players from an electronics store that sells MP3 players at a lower price than other rival electronics stores in the area.
b. Schools take steps to increase security since they believe it is more costly to allow vandalism than to hire additional security guards.
c. Citrus growers produce more oranges when the selling price of oranges falls.
Which of the above statements demonstrates that economic agents respond to incentives?


Definitions:

Chemistry

A branch of physical science concerned with the composition, structure, properties, and changes of matter.

Neo-psychoanalysts

Neo-psychoanalysts are theorists who extended Freudian psychoanalysis to include social and cultural factors in personality and psychological development.

Behaviorism

A theory of learning based on the idea that all behaviors are acquired through conditioning, emphasizing observable behaviors over internal states.

Interpretations

The action of explaining the meaning of something or the way a person understands a concept or event.

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