Which of the following is NOT a type of incentive?

• A. Monetary incentive
• B. Moral incentive
• C. Physical law
• D. Social incentive

Answer: (C)

Verified step by step guidance

1. Step 1: Understand what an incentive is in microeconomics. An incentive is something that motivates or encourages a person to take a particular action or behave in a certain way.
2. Step 2: Identify the common types of incentives. These typically include monetary incentives (financial rewards), moral incentives (appealing to a person's sense of right and wrong), and social incentives (influences from social groups or society).
3. Step 3: Analyze each option given: Monetary incentive, Moral incentive, Social incentive, and Physical law.
4. Step 4: Recognize that 'Physical law' is not an incentive because it refers to natural laws governing physical phenomena, not a motivating factor for human behavior.
5. Step 5: Conclude that the correct answer is the option that is not a type of incentive, which is 'Physical law'.