Unit 1B Flashcards
1
Q
a cost or benefit that motivates a decision or action by consumers, firms, or the government
A
incentive
2
Q
incentives can be positive or negative, but they produce a very -
A
predictable outcome
3
Q
- give consumers an incentive to buy less and firms an incentive to produce more
A
higher prices
4
Q
many people will work longer or harder for higher wages, but firms will try to hire a - of workers if wages are higher
A
lower quantity
5
Q
governments will spend - money on military if they feel threatened by a foreign leader.
A
more
6
Q
if a government wants to encourage - to make a product, they may pay them part of their costs to make it.
A
producers
7
Q
when the government does a poor job of satisfying the needs of its citizens, it is predictable that citizens will -
A
replace the government
