Which of the Following Statements About Positive Incentives Is the Most

question 177

Multiple Choice

Which of the following statements about positive incentives is the most accurate?

• A) They create additional taxes on behaviours.
• B) They increase benefits and increase costs
• C) They increase benefits or reduce costs.
• D) They decrease benefits or increase costs.

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Definitions:

Real Disposable Income

The income of individuals or the nation after adjusting for inflation, representing the amount of money that households have available for spending and saving after income taxes have been accounted for.

U.S. Exports

Goods or services produced within the United States and sold to buyers in other countries, contributing to the country's economy.

Net Exports

The difference between a country's total value of exports and total value of imports.

Real Domestic Income

The total income of a country's residents and businesses adjusted for inflation, reflecting the real purchasing power.