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Examples of Incentives
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Grade 4
4.55 Examples of Incentives
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Which choice accurately recognizes the incentive structure (benefit vs cost) influencing using the buy-now-pay-later option?
A
The positive incentive is the store’s lighting, and the negative incentive is owing a high late fee if they miss the 30-day deadline.
B
owing a high late fee if they miss the 30-day deadline is described as the benefit, while getting to delay payment without interest for 30 days is described as the cost.
C
In this situation, getting to delay payment without interest for 30 days is the positive incentive and owing a high late fee if they miss the 30-day deadline is the negative incentive.
D
The negative incentive is owing a high late fee if they miss the 30-day deadline; there is no positive incentive mentioned.
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