The economic way of thinking stresses that
a. changes in personal costs and benefits generally do not influence human behavior.
b. incentives matter--when an option becomes less costly, people will be more likely to choose it.
c. if one individual gains from an economic activity, then someone else must lose.
d. goods provided by government do not consume valuable scarce resources since government activity is not part of the market economy.
B
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The Bureau of Labor Statistics does not count discouraged workers as unemployed. Suppose discouraged workers were counted as unemployed. Explain how the unemployment rate and the labor force participation rate would change
What will be an ideal response?
GDP tends to overstate economic well-being because it takes into account:
A. Improvements in product quality over time B. Expenditures undertaken to correct pollution C. Illegal activities of individuals and businesses D. Nonmarket activities, such as the productive work of homemakers