The Incentive Principle Is an Example Of

question 88

Multiple Choice

The incentive principle is an example of:

• A) an economic decision-making pitfall.
• B) over-estimating the benefits of an action.
• C) a positive economic principle.
• D) a normative economic principle.

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Definitions:

Compounded Monthly

Pertains to the method of adding interest each month to both the initial principal and the previously accrued interest.

Annual Deposit

A fixed amount of money deposited into an account once every year.

RRSP

A Registered Retirement Savings Plan in Canada that allows for tax-deferred savings for retirement.

Compounded Quarterly

The method of calculating interest by adding it to the principal every three months, affecting the total amount of interest earned or paid.