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27 August, 10:51

Which of the following is an example of a disincentive?

1. A family receives an additional tax cut for the birth of a child.

2. A company is fined for polluting into Lake Michigan.

3. The state of Michigan passes a "tax-free zone" for companies that build in a neighborhood with old buildings.

4. The federal government gives out a subsidy for anyone who purchases solar panels.

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  1. 27 August, 11:35
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    The answer is 2. A company is fined for polluting into Lake Michigan, because this is a negative consequence.
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