The Incentive Principle States That a Person Is More Likely

question 37

Multiple Choice

The incentive principle states that a person is more likely to do something if:

• A) the opportunity costs are high.
• B) the benefits from doing it increase.
• C) everyone else is doing the same thing.
• D) he is paid to do it.

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Definitions:

Income Tax

A tax levied by governments on individuals or entities based on their income or profits.

Taxable Income

The amount of income subject to taxes, after deductions and exemptions, according to the tax laws governing the taxpayer.

Tax Rate

The percentage at which an individual or corporation is taxed by the government on income, property, or sales.

Expenditure Programs

Government policies focused on spending in specific areas such as health, education, and infrastructure to promote economic growth and welfare.