4
QuizMultiple Choice

Elasticity and Incentives

Question 4 • 2102320-Economics HONORS - Edgenuity Teacher

Which is an example of a negative incentive for producers?

Answer
A
a chance to make more money
B
a special sale at a department store
C
a coupon clipped from a newspaper
D
a sharp increase in production costs

Explanation

A negative incentive discourages producers from making or selling goods. A sharp increase in production costs makes it less profitable to produce, so it can discourage production. The chance to make more money is a positive incentive, while a sale and a coupon are incentives for consumers.

AI-written and checked against the verified answer.

Previous
Next