Asked by
Mason Adkins
on Dec 12, 2024Verified
Which of the following is not consistent with the basic postulate of economics that incentives matter?
A) Farmers produce fewer bushels of wheat in response to an increase in the price of wheat.
B) A politician votes against a proposal because most of his constituents oppose it.
C) People drive less because of higher gas prices.
D) People buy more milk in response to a reduction in the price of milk.
Incentives Matter
A principle that highlights the importance of rewards and penalties in influencing human behaviour and decisions in economics.
Basic Postulate
A fundamental assumption or principle that serves as a foundation for a system of theories, policies, or strategies.
Constituents Oppose
Refers to situations where voters or members of a community express disagreement or resistance against proposals or actions taken by their representatives.
- Appreciate the implications of incentives on the decisions made by individuals and economies.
Verified Answer
AB
Learning Objectives
- Appreciate the implications of incentives on the decisions made by individuals and economies.