If a college enforces a new policy where anyone caught cheating is immediately expelled, the basic postulate of economics suggests that
A) cheating will be completely eliminated.
B) fewer students will attempt to cheat.
C) the amount of cheating will be unaffected.
D) any of the above is possible because student behavior is unpredictable.

Question

Quizplus · Accepted Answer

The basic postulate of economics suggests that people respond to incentives. By increasing the cost of cheating (expulsion), fewer students will be willing to take the risk, thus reducing the incidence of cheating.

If a College Enforces a New Policy Where Anyone Caught