The economic way of thinking stresses that
A) changes in personal costs and benefits generally do not influence human behavior.
B) incentives matter--when an option becomes less costly, people will be more likely to choose it.
C) if one individual gains from an economic activity, then someone else must lose.
D) goods provided by government do not consume valuable scarce resources since government activity is not part of the market economy.

Question

Quizplus · Accepted Answer

The economic way of thinking emphasizes that incentives matter. When the cost of an option decreases, people are more likely to choose it because they respond to changes in costs and benefits.

The Economic Way of Thinking Stresses That