A key principle of economics is that people respond to incentives. An incentive... Could be a penalty but could not be a reward. Could be either a reward or a penalty. Could be a reward but could not be a penalty. Is the opposite of a tradeoff.

A key principle of economics is that people respond to incentives. An incentive... Could be a penalty but could not be a reward. Could be either a reward or a penalty. Could be a reward but could not be a penalty. Is the opposite of a tradeoff.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter1: What Economics Is About

Section: Chapter Questions

Problem 19QP

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Question

A key principle of economics is that people respond to incentives. An incentive...
Could be a penalty but could not be a reward.
Could be either a reward or a penalty.
Could be a reward but could not be a penalty.
Is the opposite of a tradeoff.

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Step 1: Introduce the key principle of economics, which states that people respond to incentives

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Step 2: Define an incentive

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