Which Is an Example of a "Bad" Incentive

question 161

Multiple Choice

Which is an example of a "bad" incentive?

• A) charging drivers a gasoline tax to fund green energy projects
• B) offering factories tax credits for reducing pollution
• C) rewarding students for studying and earning high grades
• D) raising homeowners' property taxes on home improvements

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Definitions:

Farmers Plant

The act of farmers sowing seeds in order to grow crops, which is a critical step in the agricultural production process.

Decrease In Supply

A condition where less of a good or service is available than before, at a given price, usually due to changes in production costs, technology, or seller expectations.

Higher Prices

denotes an increase in the cost required to purchase goods or services, often due to factors like inflation, increased demand, or higher production costs.

Given Level

A specific, predefined stage or condition used as a reference point.