8
QuizMultiple Choice

Unit Test — Unit test

Question 8 • * HSA 26-27 Economics

A reward or punishment that encourges people to behave in a certain way is called a(n)

Answer
A
want.
B
price ceiling.
C
equilibrium price.
D
incentive.

Explanation

An incentive is a reward or punishment that encourages people to act in a particular way. A want is something someone desires, while a price ceiling is a legal limit on prices and an equilibrium price balances supply and demand. So the correct choice is “incentive.”

AI-written and checked against the verified answer.

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