Which is an example of a "bad" incentive?
A) charging drivers a gasoline tax to fund green energy projects
B) offering factories tax credits for reducing pollution
C) rewarding students for studying and earning high grades
D) raising homeowners' property taxes on home improvements

Question

Quizplus · Accepted Answer

Raising homeowners' property taxes on home improvements is a bad incentive because it discourages people from making upgrades to their property that could improve its value and environmental efficiency. It may also cause individuals to avoid seeking proper permits and inspections for their improvements, leading to potential safety and code violations.

Which Is an Example of a "Bad" Incentive