An Incentive Is

question 54

Multiple Choice

An incentive is

• A) the marginal cost of some course of action.
• B) a constraint that society imposes on those who make self-interested choices.
• C) the net gain of some course of action.
• D) an inducement to take a particular action.
• E) the marginal benefit of some course of action.

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Definitions:

Demand Change

Variations in the quantity of a product that consumers are willing and able to purchase at various price levels over a period.

First Class

Describes the highest quality or most expensive service, accommodation, or means of transportation available.

Miles Traveled

A measure of distance covered, often used in the context of transportation, commuting, or travel.

Perfect Complements

Goods that are always used together in fixed proportions, where the increase in consumption of one good leads to an equal increase in the consumption of the other.