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To Say That "People Respond to Incentives" Is to Say

Question 57

Multiple Choice

To say that "people respond to incentives" is to say that


A) changes in costs (but not changes in benefits) influence people's decisions and their behavior.
B) changes in benefits (but not changes in costs) influence people's decisions and their behavior.
C) changes in benefits or changes in costs influence people's decisions and their behavior.
D) tradeoffs can be eliminated by rational people who think at the margin.

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