While 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 refers to a situation where an individual's behavior is influenced by the consequences of their actions. In this case, the generous disability insurance is creating an indirect incentive for individuals to falsely claim to be disabled, as they stand to gain financially from doing so.

While Generous Disability Insurance Can Help Those Who Have Been