Which of the following economic actions demonstrates a negative incentive?
A:An employee is fired.
B:An item is put on sale.
C:The costs of production decrease.
D:The board of a company invests more.
The board of a company invests more.
The answer is D: The board of a company invests more.
An economic action that demonstrates a negative incentive is one that discourages or reduces a particular behavior. In this case, the action of the board of a company investing more demonstrates a positive incentive, as it encourages more investment and economic growth.