Which of the following statements about incentives is true?
a. Changing one incentive can result in several unseen effects.
b. Understanding how people respond to incentives helps government planners organize the economy.
c. Fair-minded people who care about others will not be affected by incentives.
d. Emphasizing incentives ignores altruistic nonmonetary values.
a. Changing one incentive can result in several unseen effects.
You might also like to view...
As the housing bubble began to burst in 2006-2008, investors would only buy mortgage-backed securities at high yields to compensate for higher perceived default risk. As a result::
A) banks suffered significant capital losses as the value of their holdings of mortgage-backed securities declined B) funds available for mortgages increased C) bank profits rose as they earned higher interest on mortgages D) the price of mortgage-backed securities tended to rise due to the higher yields
What is the GDP using the table shown? In billions of dollarsConsumption3,600Investment800Transfer payments750Government Purchases1,000Exports650Imports450Net foreign factor income?30
A. 6,050 B. 5,600 C. 6,320 D. 5,570