Which Example Represents a Bad Incentive

question 154

Multiple Choice

Which example represents a bad incentive?

• A) charging drivers a gasoline tax to fund green energy projects
• B) offering factories tax credits for reducing pollution
• C) rewarding students for studying and earning high grades
• D) raising homeowners' property taxes because of home improvements

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Definitions:

Currency Fluctuation

Variations in the value of one currency compared to another, affecting international trade and investments.

International Organization

An entity operating across multiple countries, focusing on global or transnational issues, either for profit or as a non-profit.

Participating Countries

Nations that are involved or engaged in an international event, project, agreement, or any collaborative effort.

Trade

The action of buying, selling, or exchanging goods and services between people, firms, or countries.