Which is a negative incentive?

a

Individuals caught breaking traffic laws face fines or other penalties.
b

The government gives first-time homeowners an income tax credit for purchasing a home.
c

A government payment is given to firms that develop new products that improve public health or safety.
d

The federal government receives low-interest loans for economic development from international organizations.

1 answer

a - Individuals caught breaking traffic laws face fines or other penalties.