The Incentive Principle states that a person:
A. is more likely to take an action if its cost increases.
B. should take an action if its cost increases.
C. is more likely to take an action if its benefit increases.
D. should take an action if its benefit increases.
Answer: C
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Explain how the government gains revenue during inflation
What will be an ideal response?
The 100 largest U.S. firms currently control
a. about half of all manufacturing assets in the United States, which represents a decrease since World War II b. about half of all manufacturing assets in the United States, which represents an increase since World War II c. about half of all manufacturing assets in the United States, which represents no change since World War II d. about 40 percent of all manufacturing assets in the United States, which represents a decrease since World War II e. about 40 percent of all manufacturing assets in the United States, which represents an increase since World War II
A bank has $100 million of checkable deposits, $6 million of required reserves, and $2 million of excess reserves. What is the required reserve ratio?
a. 2 percent. b. 3 percent. c. 6 percent. d. 12 percent.
Which of the following is correct? Gross private domestic investment:
a. Includes goods that are produced but not consumed. b. Is always greater than Personal Consumption Expenditures. c. Includes stock and bonds. d. All of the above are correct.