A Five-Cent Deposit on Beer Bottles

question 78

Multiple Choice

A five-cent deposit on beer bottles

• A)provides a positive incentive because it rewards people for recycling.
• B)provides a negative incentive because it punishes people who do not recycle.
• C)is an irrational policy, because it fails to take into account incentives.
• D)is an irrational policy, because it fails to take into account self-interest.

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Definitions:

Planning Budget

A budget created for a particular level of activity, used as a tool for decision making and performance evaluation.

Employee Salaries And Wages

The compensation paid to employees for their labor, including both fixed salaries and hourly wages.

Supplies Cost

The expense associated with materials and other items necessary for the operation of a business or process.

Planning Budget

A budget that outlines the expected revenues, expenses, and resources over a specific period, often used as a financial roadmap.