Although generous disability insurance can help those who have been permanently injured,it can also increase the likelihood that individuals will falsely claim to be disabled.This likelihood is a(n)
A) direct incentive.
B) indirect incentive.
C) positive incentive.
D) innovation.
E) marginal cost.

Question

Quizplus · Accepted Answer

An indirect incentive is one that may not be the intended effect of the policy or program, but it arises as a result of it. In this case, the generous disability insurance provides an indirect incentive for individuals to falsely claim they are disabled in order to receive benefits.

Although Generous Disability Insurance Can Help Those Who Have Been