Economic Incentives Quiz

What are economic incentives?

• Reasons for making decisions with money

• Ways to avoid paying taxes

• Methods to save money

• Strategies to earn more money

What is an example of a positive economic incentive?

• Paying taxes

• Receiving a fine

• Making more money

• Getting a ticket

What is an example of a negative economic incentive?

• Earning a bonus

• Receiving a fine

• Getting a discount

• Winning a prize

How do businesses use positive economic incentives?

• By increasing prices

• By offering free items

• By reducing product quality

• By limiting product availability

What is a common form of positive economic incentive used by cola companies?

• Increasing prices

• Offering games under the cap

• Reducing bottle size

• Limiting flavors

Why are negative economic incentives unavoidable?

• They are optional

• They are a natural part of life

• They are only for businesses

• They are only for wealthy people

What do positive economic incentives encourage consumers to do?

• Avoid purchasing products

• Save all their money

• Purchase incentivized products

• Ignore advertisements

What might a positive economic incentive include?

• A tax increase

• A fee for service

• Money off an item

• A parking ticket

What is the purpose of economic incentives?

• To confuse consumers

• To motivate consumer behavior

• To increase taxes

• To reduce product availability

What is a negative economic incentive related to taxes?

• Receiving a refund

• Paying taxes

• Winning a tax lottery

• Avoiding taxes