Which of the following correctly describes incentives?
A) Incentives refer to the maximum price that a buyer is willing to pay for a good.
B) Incentives are rewards or penalties that motivate people to behave in a particular way.
C) Incentives are prices that are fixed by the government and not by market forces.
D) Incentives refer to the minimum price at which a seller is willing to sell a product.
B
You might also like to view...
A curve/line that shows combinations of goods among which a consumer would not desire one combination of goods to another combination of goods on that curve/line is called
A) a budget line. B) an indifference curve. C) a utility possibilities curve. D) a demand curve.
In the short run, monopolistically competitive firms will maximize profits by:
A. acting like perfectly competitive firms. B. acting like monopolists. C. playing strategic games like oligopolists. D. None of these statements is true.
The money demand curve will shift to the right when which of the following occurs?
A) an increase in income B) a reduction in the interest rate C) an increase in the money supply D) all of the above E) none of the above
If the price were $5 each, her consumer surplus would be
Table: Demand and Utility Schedules for packs of scented candles
A. $31.
B. $20.
C. $18.
D. $6.