Question

Which of the following is not an example of a group responding to an incentive? a.Students attend class because of an attendance policy that reduces their grade for absences. b.Consumers buy more of a product when it is on sale at a reduced price. c. Universities offer fewer online classes when they generate more revenue than traditional classes. d. Employees work harder to earn higher commissions.

Answer 1

Answer:

c. Universities offer fewer online classes when they generate more revenue than traditional classes.

Explanation:

In this case, the fact that online classes generate more revenue than traditional classes should be an incentive for Universities to offer more online classes instead of fewer online classes. This example clearly does not represent a group responding to an incentive. All of the other examples have a clear cause and consequence relationship and therefore represent groups responding to an incentive.