Incentives are
A. potential rewards available if a particular activity is undertaken.
B. ineffective as a device to get people to behave in a certain fashion.
C. useless when people behave rationally.
D. inappropriate ways to obtain a certain kind of behavior.
Answer: A
You might also like to view...
Marginal costs are the costs relevant to a decision because they
A) are the costs that will be affected by the decision. B) the cost of producing one more unit of output. C) total cost divided by units of output. D) total cost minus sunk costs.
Kristen has an income of $450 per year to spend on music CDs and movies on DVDs. The price of a CD is $15 and the initial price of a DVD is $22.50. The indifference curves in the figure above (I1, I2, and I3 ) reflect Kristen's preferences
If the price of a DVD falls to $18, the income effect on Kristen's consumption of DVDs ________ the substitution effect, so a DVD is ________ good. A) partly offsets; an inferior B) partly offsets; a normal C) reinforces; an inferior D) reinforces; a normal
Use the above figure. Refer to the above diagram where curves (a) through (d) are for four different countries. Income is equally distributed in
A) Country A. B) Country B. C) Country C. D) Country D.
A pure monopolist is selling 7 units at a price of $12. If the marginal revenue of the 8th unit is $4, then the price of the 8th unit is
A) $10. B) $11. C) greater than $12. D) $4.