. Incentives always involve ____________. *

a. Predicting human behavior

b. Monetary compensation

c. Ignoring intentions

d. Rewards and/or penalties

2. Which of the following is NOT an example of incentives at work? *

a. Someone publicly donates to a charity using Facebook.

b. A bonus is offered to the employee with best results at the end of the quarter.

c. A child is allowed to play with his toys only after finishing his homework.

d. After an increase in shoplifting, a store installs hidden cameras.

3. Which of the following is most likely to incentivize better driving? *

a. A PSA on the dangers of reckless driving.

b. Improving the quality of driving lessons.

c. Lowering insurance rates for drivers with strong records of safe driving.

d. More traffic lights and stop signs.

4. Economics is the study of ____________. *

a. Managing money

b. Entrepreneurship

c. Choices under scarcity

d. Resource allocation

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