Which of the following scenarios is the best example of an incentive?

• A. A store opens at 9 AM every day.
• B. A company offers employees a bonus for meeting sales targets.
• C. A student reads a textbook because it is assigned.
• D. A person walks to work because the weather is nice.

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of an incentive in microeconomics. An incentive is something that motivates or encourages a person to take a particular action, often by offering a reward or penalty.
2. Step 2: Analyze each scenario to identify if it involves a clear motivation or reward that influences behavior.
3. Step 3: For the store opening at 9 AM, note that this is a fixed schedule rather than a motivating factor for behavior, so it is not an incentive.
4. Step 4: For the company offering employees a bonus for meeting sales targets, recognize this as a direct reward designed to motivate employees to increase sales, which fits the definition of an incentive.
5. Step 5: For the student reading a textbook because it is assigned and the person walking to work because the weather is nice, these are examples of obligations or situational factors rather than explicit incentives.