An incentive
A)could be a reward but could not be a penalty.
B)could be a penalty but could not be a reward.
C)could be either a reward or a penalty.
D)is the opposite of a tradeoff.
E)occurs in the macroeconomy but not in the microeconomy.

Question

Quizplus · Accepted Answer

An incentive is a factor that motivates a person to take a certain action or behave in a particular way. It could be either a reward (positive incentive) or a penalty (negative incentive), depending on the situation. Therefore, choice C is the correct answer.

An Incentive