6 Questions
What principle does all of economics rest on?
Changes in incentives influence human behavior predictably.
When an option becomes more costly, what is the likely impact on people's choices?
They will avoid choosing it.
What happens when the benefits derived from an option increase according to the text?
People are more likely to choose it.
What is the implication of an option becoming more costly?
Less is chosen.
In what scenario would attendance in college classes be below normal according to the text?
The day before school holidays.
What encourages customers to buy more according to the text?
Low prices, high-quality service, and a convenient location.
Explore the fundamental principle that changes in incentives influence human behavior. Learn how monetary and nonmonetary factors impact decision-making and why individuals are more likely to choose options with increased benefits. Discover how this basic postulate of economics applies to various aspects of life.
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