You notice that when a new yoga class is offered at the student recreation center at a highly desirable time,some students from the other yoga classes go to the new class instead.Which economic principle does this statement BEST represent?
A)Choices are necessary because resources are scarce.
B)The true cost of something is its opportunity cost.
C)People usually respond to incentives,exploiting opportunities to make themselves better off.
D)"How Much" is a decision a the margin.

Question

Quizplus · Accepted Answer

This statement represents the economic principle of people responding to incentives. The new yoga class at a highly desirable time provides an opportunity for students to make themselves better off by attending that class instead of their current one. Therefore, they respond to the incentive of a more convenient class time by exploiting the opportunity to better themselves.

You Notice That When a New Yoga Class Is Offered