A basic supposition of economics is that:
A) people always,and in every case,respond to economic incentives.
B) in general,people respond to economic incentives.
C) history shows that tax incentives rarely work.
D) people do not respond to changes in costs and prices.

Question

Quizplus · Accepted Answer

While it may not be true that every single person responds to every single economic incentive, the general supposition of economics is that people do respond to economic incentives. This is supported by numerous studies and real-world examples. Choice A is too absolute and not always true, while choice C is too narrow and not universally applicable. Choice D is simply not true.

A Basic Supposition of Economics Is That