Your health club is offering a free one-year membership for the person who attends the most yoga classes in March.This results in more people attending yoga.Which economic principle does this statement BEST represent?
A)The true cost of something is its opportunity cost.
B)People usually respond to incentives,exploiting opportunities to make themselves better off.
C)There are gains from trade.
D)Markets move toward equilibrium.

Question

Quizplus · Accepted Answer

This statement represents the economic principle of people responding to incentives. The health club is offering a free one-year membership as an incentive for attending the most yoga classes in March, which results in more people attending yoga. This can be attributed to people exploiting opportunities to make themselves better off.

Your Health Club Is Offering a Free One-Year Membership for the Person