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 costs of production decrease.
The costs of production decrease.
The board of a company invests more.
An employee is fired.
This action can be considered a negative incentive because it punishes an individual (the employee) for not meeting certain expectations or performance levels. It serves as a deterrent for other employees to avoid the same fate by encouraging them to adhere to company policies and maintain their productivity. Negative incentives are designed to discourage undesirable behavior through penalties or negative outcomes.