Which of the Following Creates an Incentive to Increase the Amount

question 584

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) constant marginal cost and constant marginal benefit of the activity
• C) a decrease in the marginal cost of the activity and an increase in the 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:

Not Related

A term indicating that two or more items or concepts have no association or link between them.

Degrees of Freedom

The number of independent pieces of information upon which a statistical estimate is based, minus the number of parameters estimated.

Test Statistic

A value calculated from sample data that is used in a hypothesis test to determine whether to reject the null hypothesis.

Slope

The rate of change of the dependent variable with respect to an independent variable in a linear relationship.