Which is a negative incentive?
a
Individuals caught breaking traffic laws face fines or other penalties.
b
The government gives first-time homeowners an income tax credit for purchasing a home.
c
A government payment is given to firms that develop new products that improve public health or safety.
d
The federal government receives low-interest loans for economic development from international organizations.
a - Individuals caught breaking traffic laws face fines or other penalties.
The negative incentive out of the given options is:
a) Individuals caught breaking traffic laws face fines or other penalties.
This is considered a negative incentive because it involves punishment or negative consequences for individuals who violate traffic laws.