Suppose the U.S. government encouraged consumers to trade in their old automobiles for more efficient, new models by paying up to $5,000 for the old automobiles. These consumers would be exemplifying the economic idea that
A) people are rational.
B) people respond to economic incentives.
C) optimal decisions are made at the margin.
D) equity is more important than efficiency.
Correct Answer:
Verified
Q3: Economics does not study correct or incorrect
Q4: Economists assume that individuals
A)behave in unpredictable ways.
B)will
Q8: Where do economic agents such as individuals,
Q10: Suppose that some investors have decided that
Q11: Suppose the U.S.government encouraged new medical school
Q11: Recent changes occurring within the U.S. health
Q12: Suppose that some teachers have decided that
Q14: Economists assume that rational people do all
Q16: The basic economic problem of _ has
Q19: Consider the following statements:
a. Car owners purchase more
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