QuestionJuly 19, 2025

Question 3 of 20 Incentives influence people's economic decisions by: A. reducing the marginal benefits for a particular choice. B. removing the opportunity costs of making a decision. C. making certain choices more beneficia than others. D. making it easier to perform a cost-benefit analysis of a decision.

Question 3 of 20 Incentives influence people's economic decisions by: A. reducing the marginal benefits for a particular choice. B. removing the opportunity costs of making a decision. C. making certain choices more beneficia than others. D. making it easier to perform a cost-benefit analysis of a decision.
Question 3 of 20
Incentives influence people's economic decisions by:
A. reducing the marginal benefits for a particular choice.
B. removing the opportunity costs of making a decision.
C. making certain choices more beneficia than others.
D. making it easier to perform a cost-benefit analysis of a decision.

Solution
4.1(280 votes)

Answer

C. making certain choices more beneficial than others. Explanation 1. Identify the Role of Incentives Incentives are designed to make certain choices more attractive by increasing their benefits or reducing their costs. 2. Analyze Each Option A. Incorrect - Incentives increase, not reduce, marginal benefits. B. Incorrect - Incentives do not remove opportunity costs; they alter perceived benefits/costs. C. Correct - Incentives make certain choices more beneficial than others. D. Incorrect - While incentives may aid analysis, their primary role is altering benefits.

Explanation

1. Identify the Role of Incentives<br /> Incentives are designed to make certain choices more attractive by increasing their benefits or reducing their costs.<br /><br />2. Analyze Each Option<br /> A. Incorrect - Incentives increase, not reduce, marginal benefits.<br /> B. Incorrect - Incentives do not remove opportunity costs; they alter perceived benefits/costs.<br /> C. Correct - Incentives make certain choices more beneficial than others.<br /> D. Incorrect - While incentives may aid analysis, their primary role is altering benefits.
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