An incentive is
A) the marginal cost of some course of action.
B) a constraint that society imposes on those who make self-interested choices.
C) the net gain of some course of action.
D) an inducement to take a particular action.
E) the marginal benefit of some course of action.

Question

Quizplus · Accepted Answer

An incentive is an inducement or reward for taking a certain action. It is usually something that is intended to encourage or motivate individuals to behave in a certain way. In this sense, incentives can take many forms such as bonuses, promotions, or even something as simple as a pat on the back.

An Incentive Is