Question 34
Which of the following best illustrates an indirect incentive?
2.5 pts
A father wants his 3-year-old daughter to stay calm and quiet during an important Zoom meeting.
He offers her a lollipop in exchange for her silence. She complies.
A store manager offers a $20 gift card to the employee who makes the most sales that day. As a
result, most employees make more sales than usual.
In an effort to protect endangered wildlife, the government requires that landowners undertake
burdensome land management practices if their property exceeds 100 acres. As a result, there is a
surge of property sales that are each 99 acres in size.
In an effort to reduce smoking, the government imposes a large excise tax on cigarettes. As a result,
government revenues increase and cigarette sales decrease.