Your health club is offering a free one-year membership for the person who attends the most yoga classes in March. This results in more people attending yoga. This statement best represents this economic concept:
A)The real cost of something is what you must give up to get it.
B)People usually exploit opportunities to make themselves better off.
C)There are gains from trade.
D)Markets move toward equilibrium.

Question

Quizplus · Accepted Answer

This economic concept is known as the principle of self-interest, which states that people typically take advantage of opportunities to benefit themselves. In this case, individuals interested in winning the free one-year membership will attend more yoga classes, thus increasing demand for the yoga classes. The health club is using this incentive to increase demand and attract more customers.

Your Health Club Is Offering a Free One-Year Membership for the Person