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

Question

Quizplus · Accepted Answer

An incentive is something that motivates or encourages a person to take a particular course of action. It can be a reward offered for doing something, or a punishment for not doing it. Incentives can be financial or non-financial, and can come from a variety of sources such as governments, employers, or individuals. Examples of incentives include bonuses for meeting sales targets, tax breaks for investing in renewable energy, and penalties for breaking the law.

An Incentive Is