Which of the following best describes the effect of a negative incentive?
a. a decrease in an activity
b. an increase in a behavior
c. no change in activity
d. an unpredictable response
a. a decrease in an activity
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If the quantity of credit supplied in a market exceeds the quantity of credit demanded in the market:
A) the unemployment rate tends to rise. B) the real rate of interest tends to rise. C) the rate of inflation tends to fall. D) the real rate of interest tends to fall.
Susan is trying to decide whether to quit her $20,000 per year job so she can return to college next year as a full time student. If she goes to college next year, her books and supplies will cost $500, tuition will cost $3,000, and her other expenses (transportation, housing, and food) will increase by $2,000. What is Susan's opportunity cost of attending college next year?
A) $5,500 B) $3,000 C) $25,500 D) $3,500
The richest 20 percent of the families in the United States receive approximately ________ percent of total income.
A. 20 B. 10 C. 50 D. 90
If marginal utility is negative, then
A. Total utility is at a minimum. B. Total utility will decrease with additional consumption. C. The good or service being consumed is an inferior good. D. Total utility will increase with additional consumption.