Which of the Following Creates an Incentive to Increase the Amount

question 117

Multiple Choice

Which of the following creates an incentive to increase the amount of an activity?

• A) an increase in the marginal cost of the activity and a decrease in the marginal benefit of the activity
• B) a decrease in the marginal cost of the activity and an increase in the marginal benefit of the activity
• C) constant marginal cost and constant marginal benefit of the activity
• D) None of the above create an incentive to increase the amount of an activity.

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Definitions:

Volcanic Eruption

The explosive release of magma, ash, and gases from a volcano, affecting its surrounding areas.

Rotational Slide

A type of landslide characterized by the downhill rotation of rock or soil mass along a concave-upward surface.

Earth Flow

A flowing mass of weak, mostly fine-grained material, especially mud and soil.

Debris Flow

A fast-moving mass of loose mud, sand, soil, rock, and water that travels down slopes and valleys, often caused by heavy rain or rapid snowmelt.