You notice that when a new yoga class is offered at the student recreation centre at a highly desirable time,some students from the other yoga classes go to the new class instead.Which economic principle does this statement BEST represent?
A) Choices are necessary because resources are scarce.
B) The true cost of something is its opportunity cost.
C) People usually respond to incentives,exploiting opportunities to make themselves better off.
D) "How much" is a decision at the margin.

Question

Quizplus · Accepted Answer

This statement best represents the principle that people usually respond to incentives and exploit opportunities to make themselves better off. Students are choosing to attend the newly offered yoga class at a desirable time because it provides a greater benefit to them than their current class. This reflects the idea that individuals make choices based on their self-interest and respond to incentives.

You Notice That When a New Yoga Class Is Offered