In New York City,Mayor Michael Bloomberg has recently recommend that the city,with the help of private donors,make cash payments to poor and underprivileged parents who can certify that their children are attending school on a regular basis.The payments would start after third grade and go through high school,rising each year as dropout rates get higher and a child's forgone earning potential is higher.What economic concept does this policy represent?
A) public goods
B) technological progress
C) externalities
D) the "invisible hand"
E) incentives

Question

Quizplus · Accepted Answer

This policy represents the use of incentives to encourage regular school attendance and lower dropout rates, which is an economic concept. The cash payments act as a positive incentive for parents and students to prioritize education, and the rising payments as dropout rates increase reflect the higher economy-wide costs associated with high levels of education inequality.

In New York City,Mayor Michael Bloomberg Has Recently Recommend That