Question

g To say that people respond to incentives is to say that Question 6 options: changes in costs (but not changes in benefits) influence people's decisions and their behavior. changes in benefits (but not changes in costs) influence people's decisions and their behavior. changes in benefits or changes in costs influence people's decisions and their behavior. tradeoffs can be eliminated by rational people who think at the margin.

Answer 1

Answer:

To say that people respond to incentives is to say that:

changes in benefits or changes in costs influence people's decisions and their behavior.

Explanation:

Incentives are the rewards (benefits) or punishments (costs) that shape people's choices and decisions.  Changes in incentives, whether monetary or non-monetary, drive people's decisions and behavior.  When opportunity costs change, incentives change, and people's choices and behavior also change.  The changes that cause people to change their behavior as a result of changes in incentives can be described in predictable ways.