Which principle underlies the economics of individual choices?
A)There are gains from trade.
B)Markets move toward equilibrium.
C)People usually respond to incentives,exploiting opportunities to make themselves better off.
D)Resources should be used as efficiently as possible to achieve society's goals.

Question

Quizplus · Accepted Answer

The principle of people responding to incentives and exploiting opportunities to make themselves better off is the foundation of individual choice in economics. People make decisions based on the potential benefits and costs involved, and they will generally choose the option that maximizes their personal gain. This principle is fundamental to understanding how individuals make choices in a market economy.

Which Principle Underlies the Economics of Individual Choices