Question

While generous disability insurance can help those who have been permanently injured, it can also increase the likelihood that individuals will falsely claim to be disabled. This likelihood is a(n):

A. direct incentive
B. indirect incentive
C. positive incentive
D. innovation
E. marginal cost

Answer 1

C. positive incentive

Step-by-step explanation:

The positive incentive consists in increasing the frequency of a behavior caused by the addition of some benefit that would be the result of that behavior. It is the stimulus to a behavior that did not exist before the event occurred. For example, disability pension stipulation is an event that benefits the disabled. However, the existence of this benefit may encourage behavior (which previously did not exist) in people who are not disabled to say they are.