Question

Suppose the U.S. government encouraged consumers to trade in their old automobiles for more efficient, new models by paying up to $5,000 for the old automobiles. These consumers who did trade in their old automobiles to take advantage of the government offer would be exemplifying the economic idea that_______-

Answer 1

Answer:

People respond to economic incentives                        

Explanation:

Economic incentives is what encourages you to act in some way, while expectations are your needs your interests and your preferences. Economic incentives offer you the drive to follow your interests. These can be grouped further as extrinsic and intrinsic incentives.

Extrinsic incentives arise from the outside of the human being. These are the usual economic incentives you're likely to think of all along. Extrinsic rewards include cash, bonuses, sales, and earnings.  Intrinsic incentives are inherent inducements, and are inner to the individual. It is an intrinsic motivation to get satisfaction from jobs.