Because people respond to incentives,

Question

a. policymakers can alter outcomes by changing punishments or rewards.
b. policies can have unintended consequences.
c. society faces a trade-off between efficiency and equality.
d. All of the above.

Answer 1

d. All of the above.

Each of these statements reflects a fundamental principle in economics regarding how individuals and society react to incentives, the potential for policies to lead to unintended consequences, and the trade-offs that policymakers often face.