5. USAEO Behavioral and Applied Economics
Incentive Design — Quiz
Test your understanding of incentive design with 5 practice questions.
Practice Questions
Question 1
Which of the following best describes an economic incentive?
Question 2
A firm decides to offer bonuses to employees who exceed their sales targets. What type of incentive is this?
Question 3
Which of the following is an example of a negative incentive in public policy?
Question 4
A school introduces a policy where students with perfect attendance receive a certificate and a small gift card. What kind of incentive is this?
Question 5
A factory faces a penalty of $500 for each day it exceeds pollution limits. How does this penalty function as an incentive?