17
QuizMultiple Choice

Economic Development — Unit test

Question 17 • ISP ONLY: Economics S5000XX

Which best describes the effect negative incentives have on a certain course of action?

Answer
A
They make the action impossible.
B
They make the action more profitable.
C
They make the action difficult.
D
They make the action less likely.

Explanation

A negative incentive creates a reason to avoid a course of action, such as a cost or penalty. This makes people less likely to choose it, rather than making it impossible or more profitable. The best answer is “They make the action less likely.”

AI-written and checked against the verified answer.

Previous
Next