Which of the following economic actions demonstrates a negative incentive?
(1 point)
Responses
An employee is fired.
An employee is fired.
An item is put on sale.
An item is put on sale.
The cost of production decrease.
The cost of production decrease.
The board of a company invests more.
The board of a company invests more.
An employee is fired.
The correct answer is: An employee is fired.
When an employee is fired, it indicates a negative incentive because it represents a consequence for not meeting certain expectations or standards. This action serves as a form of punishment or disciplinary measure, which can discourage other employees from performing poorly or not meeting the required criteria.