Which of the following principles is not one of the four principles of individual decisionmaking?
A) People face tradeoffs.
B) Trade can make everyone better off.
C) People respond to incentives.
D) Rational people think at the margin.

Question

Quizplus · Accepted Answer

The principle "Trade can make everyone better off" is actually one of the ten principles of economics, but it is not one of the four principles of individual decisionmaking. The four principles of individual decisionmaking are the following: People face tradeoffs, People respond to incentives, Rational people think at the margin, and People make decisions at the margin.

Which of the Following Principles Is Not One of the Four