Question
Which principle states that people respond to
incentives?Solution
The principle of rational decision-making assumes individuals weigh costs vs. benefits. When incentives change (rewards or penalties), people adjust their behavior accordingly.
More ESIC Part B Questions
How often do you take risks in your personal or professional life?
How do you handle criticism or negative feedback?
How do you feel about taking risks?
How do you handle conflicts with others?
How often do you find yourself seeking out social interactions and group activities?
How do you approach new challenges?
How do you prefer to receive recognition or appreciation for your work?
How do you prefer to work with others on a team?
How do you handle stressful situations?
How frequently do you like novel responsibilities or duties?
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