Consider the Two Statements

question 227

Multiple Choice

Consider the two statements:
I. The closer "what you pay for" is to "what you want," then the more you can rely on strong incentives.
II. If you can't bridge the gap between "what you pay for" and "what you want" then strong incentive schemes can be better than weak incentive schemes.

• A) I is true; II is false
• B) I is false; II is true
• C) I and II are both true.
• D) I and II are both false.

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Definitions:

User Control

Features or permissions within a system or application that allow for the management of user access and authority.

Positive Economic

An economic outlook indicating growth or constructive conditions within an economy, such as increasing GDP or employment rates.

Intermediate Stages

Phases or steps in a process or a production chain that occur between the initial and final stages.