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:

Egoism

A theory or practice that emphasizes self-interest as the foundation or motivation for action, often prioritizing self-benefit over the welfare of others.

Distinction

A difference or contrast between similar things or people, making one stand out from the other.

Union Grievance Procedures

Formal processes defined by labor unions to address and resolve worker complaints or disputes with employers.

Appeal

The process of formally requesting a higher authority or court to review and change the decision of a lower court or administrative body.