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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.

User XerXes
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The answer is 2. A company is fined for polluting into Lake Michigan, because this is a negative consequence.
User Dzagorovsky
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