Father says, "Earn a B-average on your next report card and I'll help you buy a car." An economist would say that this parent is providing his child a(n)
A) study disincentive.
B) reason to slack off and not worry about her grades.
C) bribe.
D) incentive.

Question

Quizplus · Accepted Answer

The father is providing an incentive to his child by offering to help her buy a car if she earns a B-average on her next report card. An incentive is something that motivates or encourages a person to take a particular action. In this case, the incentive is the reward of a car, which is intended to motivate the child to do well in school.

Father Says, "Earn a B-Average on Your Next Report Card