Asked by Haydee Morales on Jun 23, 2024
Verified
Which of the following is not an example of a group responding to an incentive?
A) Students attend class because of an attendance policy that reduces their grade for absences.
B) Consumers buy more of a product when it is on sale at a reduced price.
C) Universities offer fewer online classes when they generate more revenue at the same cost than traditional classes.
D) Employees work harder to earn higher commissions.
Incentive
A reward or benefit that motivates individuals or entities to act in a certain way.
Attendance Policy
A set of rules or guidelines regarding the presence of individuals at a place of employment, school, or other organizations, usually outlining consequences for absence.
Commissions
Fees or percentages earned by agents or companies for facilitating transactions or services.
- Recognize the principles guiding individual decision-making in economics.
Verified Answer
OG
O'haleon GordonJun 29, 2024
Final Answer :
C
Explanation :
C is not an example of a group responding to an incentive because it describes a situation where universities offer fewer online classes due to revenue considerations, not a direct response to an incentive by the group itself. Choices A, B, and D all directly describe groups (students, consumers, employees) responding to incentives (attendance policies, sales, commissions).
Learning Objectives
- Recognize the principles guiding individual decision-making in economics.