Question

Economists assume that the only reason people take the actions they do is in response to economic incentives.

A. True
B. False

Answer 1

The correct answer is letter "B": False.

Step-by-step explanation:

Economic incentives are the factors that drive people to react in a certain form. It allows individuals to go after their preferences. However, external factors can also push people to act in one way or another. Those factors could be inflation, low job opportunities or unplanned major events like war.