What is meant by the term "incentives," and why are they important?
What will be an ideal response?
Incentives are rewards for engaging in particular activities. Much of human behavior can be explained in terms of incentives. For example, grades in school are an incentive, as are paychecks for work. Incentives are important because rational human beings seeking to promote their own welfare will respond to incentives in predictable ways.
You might also like to view...
If a firm has a tying agreement with a distributor which substantially lessens competition, then it is likely to be in violation of the:
a. Clayton Act. b. Robinson-Patman Act. c. Sherman Antitrust Act. d. Federal Trade Commission Act. e. Interstate Commerce Act.
If there were no usury law the quantity of money borrowed would be $______ billion.
A. 80
B. 110
C. 130
D. 140
Central bank independence refers to the central bank’s ability to make decisions without political interference.
Answer the following statement true (T) or false (F)
If the Ricardian equivalence proposition is correct, then
A) deficits harm future generations. B) deficits reduce investment spending. C) deficits stimulate the economy in the short run. D) all of the above E) none of the above