Your health club is offering a free 1-year membership for the person who attends the most yoga classes in March.This results in more people attending yoga.Which economic principle does this statement BEST represent?
A) The true cost of something is its opportunity cost.
B) People usually respond to incentives,exploiting opportunities to make themselves better off.
C) There are gains from trade.
D) Markets move toward equilibrium.

Question

Quizplus · Accepted Answer

The statement represents the economic principle that people usually respond to incentives, exploiting opportunities to make themselves better off. The offer of a free 1-year membership incentivizes more people to attend yoga classes in March with the goal of winning the prize. This results in behavior that benefits both the health club and individuals who want to win the prize.

Your Health Club Is Offering a Free 1-Year Membership for the Person