Which of the following is TRUE of incentives?
A) Different people are motivated by different incentives.
B) Money is the only measure of incentives.
C) All of the people in a particular nation are motivated by the same incentives.
D) In economics, people are assumed to respond to disincentives instead of incentives.
Answer: A
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Cross elasticity of demand measures the responsiveness of the quantity demanded of one good to a change in the price of another good.
Answer the following statement true (T) or false (F)
The U.S. Supreme Court ruled that the tax on food processors in the 1933 Agricultural Adjustment Act (AAA) was unconstitutional
Indicate whether the statement is true or false
Refer to the graph above. Which of the following would shift the investment demand curve from ID 2 to ID 3?
A more rapid rate of technological progress Greater inventories of capital goods Lower expected rates of return on investment in capital goods Higher business taxes on capital goods
The dominant-strategy solution implies that each firm
a. ignores the reactions of competitors b. colludes with competitors to maximize industry profits c. ignores the decisions of the other firms d. takes all potential bits of information into consideration before making a decision e. selects the optimal solution to a game