ECONOMICS
INCENTIVES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
The amount of money exchanged for goods or services.
|
|
|
Something used to affect people’s behavior and choices.
|
|
|
Money collected by the local, state, and federal governments.
|
|
|
Money earned through employment
|
Detailed explanation-1: -a common form of sales promotion in which price reductions are offered to consumers to encourage them to buy a particular product earlier or in larger quantity.
Detailed explanation-2: -Monetary incentives have two kinds of effects: the standard direct price effect, which makes the incentivized behavior more attractive, and an indirect psychological effect. In some cases, the psychological effect works in an opposite direction to the price effect and can crowd out the incentivized behavior.
Detailed explanation-3: -For example, a rise in the price of any good is an incentive for us to back off from buying it as much as we used to. Perhaps we’ll buy a different good instead. So, for example, a rise in the price of butter creates an incentive to buy less butter.
Detailed explanation-4: -n. an external stimulus, such as a condition or an object, that enhances or serves as a motive for behavior.