Could you explain in economics concepts the situation in the image why there is incentives in the situation?

Tim Geithner, a former V. S. Treasury Secretary, has said, "The recession that began in late 2007 was extraordinary severe. But the actions we took at its height to stimulate the economy helped arrest the free fall. preventing an even deeper collapse and putting the economy on the road to recovery." Which two of the three principles of economy-wide interaction are at work in this statement?

Herbert Simon, the Novel Prize-winning economist, described the rational model of decision-making in what way?

In social science, how would the discussion of variables and attributes apply to economics?

What good is economic theory if it cannot predict the behavior of a specific individual?

A key principle of economics is that people respond to incentives. An incentive... Could be a penalty but could not be a reward. Could be either a reward or a penalty. Could be a reward but could not be a penalty. Is the opposite of a tradeoff.

What are endogeneity and heterogeneity in economics?

Using your own words, Explain how does the study of economics depend upon the phenomenon of scarcity?