The economic way of thinking stresses that
A) changes in personal costs and benefits generally fail to exert much impact on behavior.
B) incentives matter--individuals respond in predictable ways to changes in personal costs and benefits.
C) if one individual gains from an economic activity, then someone else must lose and in the same proportion.
D) if a good is provided by the government, its production will not consume valuable scarce resources.

Question

Quizplus · Accepted Answer

The economic way of thinking emphasizes that individuals respond to incentives, meaning that changes in personal costs and benefits will influence their behavior in predictable ways.

The Economic Way of Thinking Stresses That