7 Questions
What is the Incentive Principle?
A person is more likely to take action if the benefit increases.
What kind of action is a person more likely to take according to the Incentive Principle?
When the benefit increases
Based on the text, what makes a person less likely to take an action?
Increase in cost
When a person is more likely to take an action, what typically happens to the benefit?
Increases
In what scenario is a person less likely to take an action based on the Incentive Principle?
When the cost increases
What factor influences a person's likelihood of taking an action according to the text?
Increase in benefit and decrease in cost
According to the Incentive Principle, why would a person be less likely to take an action?
Because the cost increases
Test your knowledge on how societies allocate produced goods and services to individuals and groups after determining what and how to produce.
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