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Questions and Answers
What is the Incentive Principle?
What is the Incentive Principle?
- A person is more likely to take action if the benefit increases. (correct)
- A person is less likely to take action if the cost increases.
- A person is less likely to take action if the cost decreases.
- A person is more likely to take action if the benefit decreases.
What kind of action is a person more likely to take according to the Incentive Principle?
What kind of action is a person more likely to take according to the Incentive Principle?
- When the cost increases
- When the benefit increases (correct)
- When the cost decreases
- When the benefit decreases
Based on the text, what makes a person less likely to take an action?
Based on the text, what makes a person less likely to take an action?
- Increase in cost (correct)
- Increase in benefit
- Decrease in benefit
- Decrease in cost
When a person is more likely to take an action, what typically happens to the benefit?
When a person is more likely to take an action, what typically happens to the benefit?
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In what scenario is a person less likely to take an action based on the Incentive Principle?
In what scenario is a person less likely to take an action based on the Incentive Principle?
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What factor influences a person's likelihood of taking an action according to the text?
What factor influences a person's likelihood of taking an action according to the text?
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According to the Incentive Principle, why would a person be less likely to take an action?
According to the Incentive Principle, why would a person be less likely to take an action?
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