Grades are low in your biology class,so your professor offers an optional 10-point extra credit assignment.Most of the students turn in the assignment.Which economic principle does this statement BEST represent?
A) The true cost of something is its opportunity cost.
B) "How much" is a decision at the margin.
C) People usually respond to incentives,exploiting opportunities to make themselves better off.
D) There are gains from trade.

Question

Quizplus · Accepted Answer

This statement represents the economic principle that people usually respond to incentives. The incentive for the students to turn in the optional assignment was the opportunity to earn extra credit and improve their grades. They exploited this opportunity to make themselves better off.

Grades Are Low in Your Biology Class,so Your Professor Offers