Which of the following is TRUE of incentives?
A. All of the people in a particular nation are motivated by the same incentives.
B. Different people are motivated by different incentives.
C. In economics, people are assumed to respond to disincentives instead of incentives.
D. Money is the only measure of incentives.
Answer: B
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A product that has an elastic demand curve has all of the following characteristics EXCEPT
A) it has many substitutes. B) a consumer can wait to buy the product. C) it has few or no substitutes. D) it is a large part of a consumer's income.
In general, the unemployment rate does not vary greatly by:
A. educational status. B. gender. C. age. D. height
If net taxes are included in the model, the equation that shows consumption at each level of income is: C = a + b(Y - T) or C = a + bY - bT
a. True b. False
Suppose that consumers become pessimistic about the future health of the economy. What will happen to aggregate demand and to output? What might the president and Congress have to do to keep output stable?