Which of the Following Is True of Incentives

question 72

Multiple Choice

Which of the following is true of incentives?

• A) Different people are motivated by different incentives.
• B) Money is the only measure of incentives.
• C) All of the people in a particular nation are motivated by the same incentives.
• D) In economics, people are assumed to respond to disincentives instead of incentives.

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Definitions:

Perpetual Inventory

An inventory system that updates item records continuously as transactions occur.

2/10, n/30

A common credit term indicating that a buyer can take a 2% discount on the invoice price if payment is made within 10 days; otherwise, the net amount is due in 30 days.

FOB Destination

A shipping term indicating that the seller bears freight charges and remains responsible for the goods until they are delivered to the buyer's location.

Freight Costs

Expenses incurred by a company to transport goods from one place to another, such as shipping charges for receiving or sending out inventory.