Questions
MUF0061 Economics Unit 1 - Semester 2, 2025 Revision Quiz - Incentives and Behavioural Economics (8 - 10 minutes)
Single choice
Regarding the use of incentives as an influence on decision-making, which of the following is correct?
Options
A.a. A government cash subsidy for households who install solar panels to their homes is a negative financial incentive.
B.b. Advertising to encourage healthy eating is a positive financial incentive.
C.c. The imposition of a tax on cigarette consumption is a negative financial incentive.
D.d. A law that imposes a financial penalty (fine) on firms for pollution is a positive financial incentive.
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Step-by-Step Analysis
Question restatement: The prompt asks which statement about incentives as an influence on decision-making is correct, given four options.
Option a: 'A government cash subsidy for households who install solar panels to their homes is a negative financial incentive.' A cash subsidy reduces costs and encourages the behavior; this is a positive financial ......Login to view full explanationLog in for full answers
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